Patterns: EUR/SGD, AUD/SGD
EUR/SGD 1H Chart: Short-term decline expected
The EUR/SGD currency pair has been trading downwards since the beginning of February after it reversed south from the upper boundary of the long-term descending channel.
From a theoretical perspective, it is likely that some downside potential could prevail in the market, as the exchange rate should decline to the lower channel line located in the 1.4800/1.4850 area.
If the given channel holds, it is likely that a reversal north could follow. Otherwise, a breakout south could occur, and the currency pair could decline below 1.4800.
AUD/SGD 1H Chart: Short-term increase expected
The Australian Dollar has been appreciating against the Singapore Dollar since the beginning of February after the AUD/SGD exchange rate reversed north from the lower boundary of the long-term descending channel.
From a theoretical point of view, it is likely that some upside potential could prevail in the market, as the exchange rate should target the upper channel line in the 0.9400 area.
If the given channel holds, it is likely that a reversal south could occur, and some downside potential could prevail in the market in the medium term. Otherwise, the exchange rate could exceed the 0.9500 level.
Author
Dukascopy Bank Team
Dukascopy Bank SA
Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.
