USD/SGD 1H Chart: Decline continues
The Singapore Dollar has been appreciating against the US Dollar after the exchange rate reversed from the upper boundary of a medium-term channel at 1.3870.
As apparent on the chart, the pair is also trading in a short-term descending channel. From a theoretical point of view, the pair should follow the junior channel and aim for the lower boundary of the senior channel near 1.3670. Important support level is the monthly PP at 1.3700.
If the senior channel does not hold, a breakout south might occur and the rate might drop to the Fibonacci 38.20% at 1.3629.
As apparent on the chart, the pair is also trading in a short-term descending channel. From a theoretical point of view, the pair should follow the junior channel and aim for the lower boundary of the senior channel near 1.3670. Important support level is the monthly PP at 1.3700.
If the senior channel does not hold, a breakout south might occur and the rate might drop to the Fibonacci 38.20% at 1.3629.
The USD/SGD currency pair reached the lower boundary of the medium-term ascending channel and reversed north at the beginning of December.
Given that the exchange rate is being supported by the 55-, 100– and 200-hour SMAs, it is expected that the bullish momentum continues to prevail. It is likely that the pair targets the Fibonacci 50.00% retracement at 1.3803. Technical indicators for the 1W time frame support bullish scenario.
However, this advance might not be immediate and the pair might re-test the lower channel line 1.3650.