EUR/SGD 4H Chart: Channel Down

Since March the bears have been largely in control of the market, leading to an eight-figure decline and appearance of the downward-sloping channel, meaning the long-term outlook is negative. In the short run the Euro is also considered to be bearish, since the currency has recently bounced off the upper down-trend line. At the moment EUR/SGD is facing the support at 1.6866—Jun 12 low reinforced by the weekly S1 level, but the sell-off is likely to carry on until the price hits a potentially tough demand area around 1.6716, consisting of the lower down-trend line, Nov 7 low and weekly S3. Moreover, a majority of the weekly indicators are giving ‘sell' signals.