Dukascopy Bank Team
Dukascopy Bank SA
CHF/SGD 1H Chart: Triangle
Comment: Through September and October, the CHF/SGD cross has been on a sideways trend; thus it has not lagged that much. However, just recently the currency pair has formed a triangle pattern.
In the next few hours the Swissy will reach the pattern’s apex; therefore, this is a interesting pattern to watch. Now, the technical indicators expect the currency couple to continue its sideways trend. However, for instance the SWFX traders’ have a completely different outlook, as 73% of them have opened short positions on the pair. To our mind, the pair could approach October’s low at 1.3222 if it declines below the major level at 1.33.
GBP/CAD 4H Chart: Falling Wedge
Comment: GBP/CAD has formed a 59-bar long falling wedge pattern, after reaching the highest level since early August at 1.8263 on 20th of October.
Currently, the pair is testing the upper trend-line, which is also underpinned by the 100 and 200-period SMAs around 1.8040. The 4H and weekly technical indicators are pointing the same way as the trend is heading-to the downside. To our mind, it is unlikely that the trend could be broken to the upside due to the strong resistance that the Pound is facing. Therefore, we expect the pair to fall below the psychological level at 1.80 and to target October’s lows around 1.7870, possibly even the 1.78 mark.
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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