EUR/SGD 1H Chart: Pennant
Updated
EUR/SGD 1H Chart: Pennant
- The common European currency is advancing against the Singapore Dollar in a little pennant pattern that formed in the result of announcement of information on the US CPI last Friday.
- Since the pair is moving in a continuation pattern, then breakout is expected to occur in the northern direction.
- The length of the subsequent rise might amount to 50-60 basis points, which coincides with the updated weekly R1 located at the 1.6155 level.
- This scenario is additionally supported by the pressure exercised by the 20- and 200-hour SMAs as well as the 55- and 100-hour SMAs plus the weekly PP at 1.6052.
- Moreover, 71% of traders hold bullish positions on the given currency pair, while 65% of pending orders in 100-pips range are set to buy.
Note
EUR/SGD set for reversalEUR/SGD is trading in two patterns simultaneously. The more senior formation is a rather chaotic channel up, while the junior one—a descending triangle. The latter seems to have reached its maturity, thus suggesting that a breakout may be due in the upcoming hours.
Descending triangle is generally a bearish pattern that should guide the rate towards the weekly S1 at 1.6033. This scenario is likewise supported by daily indicators.
Given that the 55-, 100– and 200-hour SMAs are located just above the current price level, a breakout north is unlikely. However, if this situation is to occur, the next important resistance is set by the weekly R1 at 1.6253.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.