Patterns: XAG/USD, SGD/JPY

XAG/USD 1H Chart: Senior channel tested

Silver has been accelerating against the US Dollar since June 5. This up-move followed a few-day movement sideways which was limited from below by the 23.60% Fibonacci retracement at 16.40.

This weekly appreciation has pushed the rate up to its two-month high of 17.15. The upper boundary of the senior wedge is likewise located at this level.

If taking into account characteristics of the senior and junior wedges, the pair should bounce off the 17.20 area and begin a new wave down. This scenario would be confirmed by a bearish breakout of the 61.80% Fibo, the monthly R1 and the 100-hour SMAs near 16.85.

Meanwhile, technical indicators still demonstrate slight upside potential that should be realised during the remaining part of this week. The nearest important resistance is either the four-month high or the monthly R3 at 17.40 and 17.65, respectively.

SGD/JPY 1H Chart: Pair restricted by 82.80

The Singapore Dollar has been gradually appreciating against the Japanese Yen since it bounced off the senior channel circa 79.75 mid-March. The latest wave up in this junior pattern began on May 29.

The pair should have tested its upper boundary today; however, the strong resistance at 82.80 has halted any attempts to reach the given channel this week. This might point to a change in sentiment, thus resulting in a fall within the following session.

If the 55-period (4H), 100– and 200-hour SMAs and the 38.20% Fibo retracement are breached near 82.40, the Singapore Dollar is most likely to decline and target either the 100– and 200-period (4H) SMAs or the monthly PP at 82.00 and 81.50, respectively.

Conversely, the rate moving above 82.80 should be followed by a slight surge until 83.50 prior to making a bearish reversal.