EUR/SGD 1H Chart: Breakout south expected
The European common currency has been ranging against the Singapore Dollar since late June. This movement has been bounded in between the 38.20% and 50.00% Fibonacci retracement lines at 1.5860 and 1.5972, respectively.
This movement sideways is a part of a larger-scale ascending channel near whose bottom boundary the rate was trading at the time of this analysis.
The Euro’s failure to accelerate from this line could be an early indication of a subsequent decline. This scenario would be confirmed if the senior channel is breached circa 1.59. It is a strong support level, as the SMAs on both the 1H and 4H time-frames are located there.
In case of a bearish breakout, the pair is likely to target the 55– day SMA and the monthly PP at 1.58 within the following two weeks.
This movement sideways is a part of a larger-scale ascending channel near whose bottom boundary the rate was trading at the time of this analysis.
The Euro’s failure to accelerate from this line could be an early indication of a subsequent decline. This scenario would be confirmed if the senior channel is breached circa 1.59. It is a strong support level, as the SMAs on both the 1H and 4H time-frames are located there.
In case of a bearish breakout, the pair is likely to target the 55– day SMA and the monthly PP at 1.58 within the following two weeks.