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The second currency cross with the Euro, namely EUR/SGD, has already been hovering to the south for a considerable period of time. It formed the bearish channel on a four-hour chart in the end of July. Right now it is trading just above the weekly S1 at 1.6094 and has all opportunities to cross this level in the foreseeable future.
Short-term technical studies are pointing to the downside, while longer-term ones are mixed at the moment. SWFX traders, however, predict the pair to increase in 74% of all cases. Therefore, at first we expect the Euro to reach the lower trend-line at 1.5971, while extra support from weekly S2 at 1.5978 may help the pair to bounce back from this level.
© Dukascopy Bank SA