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.
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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