AUD/CAD 1H Chart: Descending Triangle
|USD/SGD 1H Chart: Channel Down
Comment: The American Dollar is trading against the Singapore Dollar simultaneously in the two descending channels. The junior channel represents the reflection of the currency rate from the upper edge of the senior channel in the first half of May. At the current moment, the pair is gradually moving downwards to test the support provided by the monthly S2 at 1.3814 and 38.20% Fibonacci retracement level at 1.3809. The Fibonacci retracement levels for this pair are measured by connecting the 2016 low level with the 2016 high level. Due to the strong pressure, there is a high probability that the rate will break though the junior channel in the upward direction before reaching the bottom trend line of the dominant channel.
AUD/CAD 1H Chart: Descending Triangle
Comment: The Australian Dollar is trading against the Canadian Dollar simultaneously in the two descending channels. The junior channel formed as a result of rapid depreciation of the Loonie, which was most likely associated with the released fundamental data in the end of last week. Nevertheless, the latest movements of the pair also confirmed formation of the descending triangle with the equal lows located at the 1.0065 level. Currently, the currency rate is on its way to test the resistance cluster consisting of the 100-period and 55-period SMAs at 1.0102 and 1.0104 as well as the weekly PP at 1.0105. This formation supports the scenario that in the upcoming days the pair will make a breakout in the downward direction.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.