Patterns: EUR/TRY, SGD/JPY
|EUR/TRY 1H Chart: Falling wedge in sight
The European common currency has been appreciating against the Turkish Lira for five weeks. This movement has been bounded in a falling wedge.
As apparent on the chart, the exchange rate is trading near the support cluster formed by the 55-, 100–. 200-hour SMAs and the Fibonacci 38.20% retracement in the 6.9883/7.0638 range. It is expected that the pair will breach given support and trade down to the lower wedge line located circa 6.70.
However, if given support cluster holds, a breakout from the pattern could occur and the pair could jump towards the psychological level at 7.3500.
SGD/JPY 1H Chart: Pressured by 55-, 100– and 200-hour SMAs
The Singapore Dollar has been depreciating against the Japanese Yen after the currency pair reversed from the upper boundary of a long-term descending channel at 83.34.
Currently, the rate is trading near the lower boundary of the junior channel near 82.30. From the theoretical point of view, the pair should aim for the lower boundary of the senior channel. Given this fact, it is expected that the pair might continue following the junior trend. Potential downside targets could be the weekly S2 at 81.98 and the weekly S3 at 81.68.
It is unlikely that the exchange rate could surge towards the upper line of the senior channel due to the resistance of the 55-, 100– and 200-hour SMAs located in the 82.68/82.80 range.
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