Dukascopy Bank Team
Dukascopy Bank SA
EUR/SGD 1H Chart: Channel Up
Comment: EUR/SGD appears to be in a good position to rebound. The currency pair is approaching the lower boundary of the channel it has recently formed, which is also reinforced by the weekly PP. At the same time, most of the four-hour and daily technical indicators are pointing upwards. Moreover, the Euro is oversold in the SWFX market, where 71% of open positions are short. Accordingly, we expect the price to bottom out near 1.5440 and surpass the Dec 11 high at 1.56.
Meanwhile, a close beneath 1.5440 will imply a sell-off down to the December low at 1.5319. Additional support is at 1.5278/65, created by the weekly S1 and 200-hour SMA.
CAD/CHF 1H Chart: Falling Wedge
Comment: We are receiving conflicting signals on CAD/CHF. From one side, the outlook is bearish, being that the exchange rate is beneath the long-term moving average and a majority of the four-hour and daily indicators is giving ’sell’ signals.
On the other hand, the currency pair is forming a falling wedge, which is a reversal pattern, and two thirds of open positions are short. Accordingly, we should wait for a break-out from the pattern before making a near-term forecast. If CAD/CAD closes above 0.72, the focus will shift to the December 10 high at 0.73, while a dip through 0.7120 will highly likely lead to a decline down to 0.6970, the lowest level since this year’s August.
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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