Dukascopy Bank Team
Dukascopy Bank SA
EUR/GBP 1H Chart: Channel Down
Comment: Starting from the second part of November the EUR/GBP cross has been falling in value. Now, more recently it started to form a bearish channel.
During last couple of trading days the currency pair has been fluctuating around the 100-period SMA, which currently is at 0.7878. Although, the pair cannot surpass the level, thus most likely it will continue its slide. Moreover, the 4H and daily technical studies are pointing to the south. We think that the pair will approach the monthly and weekly S1 at 0.7827/23. The pair’s SWFX traders’ think alike, as 59% of them have opened short positions on the pair, meaning that they are expecting a decline.
USD/SGD 4H Chart: Broadening Rising Wedge
Comment: After the pair consolidated around 1.27 mark during October, it has regained its bullishness. Moreover, the pair has been pushed into a broadening rising wedge pattern.
The pair has reached the highest trading levels since the beginning of 2011. According to technical indicators, the pair has reached its top or at least is near it. At the same time a drop is not expected, as consolidation or a correction towards the 1.30 mark is the more likely scenario. Nevertheless, an overwhelming majority of the SWFX market participants are expecting the US Dollar to continue outperforming its Singapore’s peer.
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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