EUR/SGD 1H Chart: Channel Up

USD/NOK 1H Chart: Channel Down

Comment: Although previously we held a bullish outlook on USD/NOK because of an upward-sloping channel on the daily chart, the lower boundary of the pattern has just been breached. This means there are likely to be even more losses in the future. The next target is support at 7.50. However, we should also not rule out a possibility of a pull-back to the broken line, which will be expected if resistance at 7.7826 fails to stop a recovery from the Mar 26 low. This rally may well extend up to 8.00 (reinforced by the 200-hour SMA), but the overall negative bias will still be valid. Meanwhile, the SWFX market is optimistic with respect to the Dollar, being that as many as 72% of all open positions are long.

EUR/SGD 1H Chart: Channel Up

Comment: While moving from the lower to the upper border of the falling wedge that is emerging on the daily chart EUR/SGD has managed to form a bullish channel. Still, the short-term risks are heavily skewed to the downside, since the pair has just confirmed a dense supply area, created by the up-trend, 200-hour SMA, and weekly PP. The Euro is expected to stabilise only near 1.44, from where the advance should resume. The channel is likely to be breached on the downside after the price reaches 1.47, but considering the falling wedge on a higher time-frame, this major trend-line should eventually be violated, which will imply long-term appreciation of the common currency.