EUR/SGD 1H Chart: Rectangle

Even though rectangles are considered to be continuation patterns, statistically 55% of all break-outs are taking place to the downside. The pair will shortly encounter the local resistance line represented by the daily R1 and February 3/8 highs at 1.5827/32. From here the four-hour technical indicators foresee a new down-leg in the direction of 1.5568, namely the green horizontal trend-line. A correction is supported by the market sentiment, which indicates there are too many bulls (71%) at the moment. The bullish case is not ruled out either. In case they violate the aforementioned supply, the next aim will be the weekly R1 at 1.5890. This idea is particularly shared by the daily technicals on Thursday.