Dukascopy Bank Team
Dukascopy Bank SA
AUD/SGD 1H Chart: Channel Up
Comment: For the past several days AUD/SGD has been in a strong upward trend, after it had rebounded from 0.9720. The upside, however, is limited. Although the hourly and four-hour indicators suggest that the price will rise above the daily and weekly R1 levels at 1.0060, the chances are that the Aussie will bounce off of the seven-week down-trend already at 1.0100. The target will then be the lower boundary of the bearish channel emerging in the four-hour chart, namely the 0.9700/0.9650 zone. In case of an upside breakout, AUD/SGD will probably first aim for the weekly R2 and Feb 3 high at 1.0175, and the next objective should be the weekly R3 and Dec and Jan highs at 1.0370/50.
EUR/JPY 1H Chart: Rising Wedge
Comment: The bullish correction from 126 yen (2015 low) in the four-hour chart might have to wait. The currency pair is forming a rising wedge, a pattern that implies a sell-off. At the same time, EUR/JPY is approaching a dense supply area at 129, where the daily R3 coincides with the 200-hour moving average and the down-trend formed during the first week of February. Accordingly, we expect the Euro to revisit last year’s minimum. As for the alternative scenario, the initial objective will be at 130.30 (weekly R1 and Feb 9 high), while sellers at 131.50 should still put a lid on the rally. Meanwhile, the SWFX market is moderately bullish, being that 57% of open positions are long.
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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