EUR/SGD 1H Chart: Channel Down
Comment: EUR/SGD topped September highs early October, just to prove disequilibrium and give in to supply pressures, by entering a descending channel, which the pair has been maintaining. Losing volatility, an additional channel down has extended the latest wave, suggesting that the pair could reach the bottom trend-line around 1.5117 or 1.5087 and hover in the middle of the pattern a little longer. Decent support is currently provided by 1.5184, where the weekly S1 and junior channel bottom trend-line clusters, serving as an entry point for a slide towards the senior trend-line. The 1.5227/5225 area is capping upside movements for now and we look for it to fail there if more attacks are launched. There is, however, a strong possibility that the rate might fail to dip underneath 1.5222, as the two-month channel up could prove its dominance and cause the rate to break both junior ones. We would then look for 1.5433 as the ultimate target for the next large-scale wave.
NZD/USD 1H Chart: Rising Wedge
Comment: A break below the bottom trend-line of the week-long wedge NZD/USD traded in suggests that a steep downward motion will extend the recent theme, further implying that a retracement should take place after the plunge is executed. We see the 0.7181/7166 area as one capable to limit dips underneath in the short term, with further risks skewed to the downside when the correction is completed. Considering the incomplete channel-like form of the recent motion, a possibility of the bullish market extension cannot be eliminated – meaning that should NZD/USD limit its weakness with 0.7207, a bounce towards the upper trend-line would confirm the channel, which would then lead to tests of levels above the channel bottom line.
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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