Dukascopy Bank Team
Dukascopy Bank SA
EUR/TRY 4H Chart: Channel Down
Comment: EUR/TRY proved to be unable to surpass resistance at 3.48 both in August and September, and now the currency pair is developing a bearish channel. Accordingly, we expect the down-trend at 3.3552 to limit near-term rallies, while the rate is expected to head towards 3.2117, where it should start an upward correction after hitting the weekly S2 and the lower boundary of the pattern. Meanwhile, a close above a tough resistance area circa 3.38 (Oct 14 high, monthly PP and 200-period SMA) will imply an increase in price up to 3.4612 Turkish liras. As for the SWFX traders, they mostly hold bearish views with respect to the Euro zone currency, being that 73% of open positions are short.
USD/SGD 4H Chart: Channel Down
Comment: USD/SGD appears to be trading within a bearish channel, which means we are likely to see the pair being rejected by the falling resistance trend-line at 1.3880. If this is the case, the first target will the Oct 15 low and the monthly S2. However, we expect a bigger correction to start lower, around 1.3640, but demand area at 1.3730/00 does represent significant upside risk. Alternatively, should supply at 1.3880 be insufficient to trigger a sell-off, there will be resistances at 1.3968 and 1.4060/30, but it is the monthly PP and 200-period SMA at 1.4150 that are likely to act as a ceiling and prevent further recovery. At the same time, the sentiment is only slightly bearish: 56% of positions are short.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.
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