EUR/SGD 1D Chart: Channel Up

After bottoming out at 1.5175 in August, the single European currency started rapidly and consistently gaining value relative to the Singapore Dollar. As a result, EUR/SGD formed a channel up pattern and should therefore carry on advancing north in the long run.

In the near term, however, there are substantial downside risks, being that the currency pair has recently bounced off the upper boundary of the channel and thus should head towards the lower rising support line at 1.6951. There, also considering the ‘buy' signals of the technical indicators, the Euro is expected to receive bullish impetus that will be enough to cover the distance between the spot and 1.7737.