© Dukascopy Bank SA
Because of a tough resistance at 1.7436, which EUR/SGD was unable to breach on several occasions, the pair had no other choice but to decline. As a result, there is now a downward-sloping channel on the hourly chart being formed, and the pattern can be seen on almost every cross of the Euro. Consequently, the currency is likely to cede even more ground from here. The immediate resistance is at 1.7150, and if it stays intact, EUR/SGD should pierce through the weekly S1 and Feb 6 low near 1.78 and stop descending only after hitting 1.6950, where it is supposed to meet the lower edge of the bearish channel and start a bullish correction.
© Dukascopy Bank SA