The EURSGD pair is trading inside of a triangle formation at the moment. Therefore, based on in which direction the price will break the triangle, we can judge the future price action in the pair.
Namely, an upward breakout will likely mean that EURSGD will soon trade towards 1.58 and maybe even 1.61.
A downward breakout of the triangle, on the other hand, will most probably mean that the pair will reach the lows around 1.48 and in this scenario selling the pair will be the recommended course of action.
We can get a clue for the direction in which EURSGD will probably break out by watching the European Central bank meeting this Thursday and the press conference with President Mario Draghi. It will be important to see whether the ECB is willing to start reducing the quantitative easing program in some way, or if Mario Draghi at least talks about reducing the number of bonds bought per month. Taken into account the improvements in the EU economy in recent months this is a real possibility, and if it materializes it will be strongly bullish for the Euro, meaning EURSGD will likely break the triangle to the upside if this turns out to be the case.
In case Draghi remains fully dovish, extends the QE program, and the ECB is not willing to trim down the QE program then that will be bearish for the Euro and the EURSGD pair.
On the other side, the Foreign Reserves in US Dollars held by the Monetary Authority of Singapore was higher than forecasted. There are no other reports for Singapore brokers to be released this week which means that the EURSGG pair will trade mainly on Euro related news and technical analysis.
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