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Weekly Technical Analysis Report 14 June – EURCAD played out nicely, USDSGD could see further upside this week

Weekly Technical Analysis Report 14 June – EURCAD played out nicely, USDSGD could see further upside this week

1. Outlook on EURCAD: Limited downside before a bounce

Summary of last week’s call: EURCAD struggles to overcome last Friday’s high of 1.47086, down 0.15% intraday as we head into Monday’s European Session. Currently, prices remain under pressure from its descending trend line and we could see a further downside to test our support zone at 1.46694 – 1.46784, in line with the Fibonacci retracement levels. Keeping in mind that the views on the H4 and daily time frames echo a more bullish bias as prices broke their previous resistance zone, this pullback in prices could present an opportunity to play the bounce.

EURCAD charts

Before:

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After:

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2. Outlook on USDSGD: Bullish breakout to be seen

With the Fed’s monetary policy meeting around the corner, USDSGD has been trading sideways, as prices held within the support and resistance areas at 1.32208 and 1.33100 respectively. The support area at 1.32208 lines up with the weekly support level, ascending trend line and 78.6% Fibonacci retracement and a test of this area could see a bounce from here. That said, we do caution the limited upside in prices, noting the 1.33100 resistance area, in line with the descending trend line and 61.8% Fibonacci retracement. A break above this resistance zone could see prices push much higher. Keeping in mind that the views on the weekly time frame echo a more bullish bias as prices broke their previous resistance zone, the pullback in prices on the daily time frame could present an opportunity to play the bounce.

USDSGD chart 

Outlook for USDSGD: Bullish breakout to be seen by Salzworth on TradingView.com

Salzworth Asset Management