© Dukascopy Bank SA
Since Tuesday the trading range of EUR/SGD has been narrowing, which has lead to emergence of a symmetrical triangle. But today the pair has already broken out of the pattern to the downside, providing us with a good sell opportunity, especially if the Euro retraces back to the up-trend at 1.6330 before resuming the decline, which in the end may extend down to the Sep 8 low at 1.62.
At the same time, the technical indicators on the hourly and daily time-frames are also suggesting a bearish scenario, which is in line with the view held by the SWFX market participants—71% of them are planning to profit from Euro's depreciation.
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