Dukascopy Bank Team
Dukascopy Bank SA
USD/SGD 1H Chart: Channel Up
Comment: After a period of consolidation in the end of August the pair started to form a bullish channel on 29th of August. At the moment USD/SGD is trading closer to the lower trend-line, thus the trend’s confirmation by touching the boundary might be expected. However, the bullish stance is likely to stay in effect, as a slight majority of the technical indicators are pointing to the north. Also, the traders’ sentiment is bullish, as a distinct majority (71.94%) of the SWFX market participants are expecting the U.S. Dollar to outperform its Singapore’s counterpart. In our opinion, the longer term target is the major level at 1.26.
AUD/CAD 4H Chart: Double Top
Comment: At the beginning of July AUD/CAD dropped below the 1.0000 mark; although, this decline stopped at 0.9939. Starting from there the pair has formed a double top pattern. The pair has reached the top around 1.0227 not only twice but already three times. Therefore, this could be perceived as a triple top pattern, yet it does not change the most likely outcome. Despite the 4H technical indicators being bullish we are sceptical on a further appreciation. To our mind the pair is likely to weaken towards the neckline at 1.0106, before falling even lower. The SWFX traders expect a decline as well, more than 73% of them see the pair as overbought.
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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