EUR/SGD 1H Chart: Triangle

EUR/SGD is currently undergoing a consolidation, following a major four-and-a-half bearish wave from 1.71. But the pattern the currency pair has recently formed has already reached its limit. Judging by the technical indicators, the bearish sentiments are likely to prevail. In this case we can expect a pull-back from 1.6659 and then a renewed sell-off down to the Jul 24 low at 1.6641. However, 71% of open positions at the moment are long, meaning a substantial majority of the traders consider the single European currency to be overvalued. In order to confirm its bullish intentions EUR/USD will have to close above 1.6728 (Jul 25 high, 200-hour SMA and daily R2).