AUD/SGD continues to trade in a long-term descending channel. The pair, however, has diminished its trading range, as it failed to overcome the 1.06 mark late in January. The Aussie has been since edging lower in a junior channel and was consolidating near 1.0124 at the time of this analysis. This level is a 2017/2018 low.
The pair trading sideways for the last four days suggests that the market sentiment might change in favour of bulls soon, especially given that this area is likewise reinforced by the weekly S1 and the monthly S2.
In order to confirm this scenario, the Australian Dollar has to overcome two significant resistance levels, namely, the 55– and 100-hour SMAs and the weekly PP at 1.0250 and the 200-hour SMA at 1.03. A possible upside target is a downward-sloping trend-line circa 1.0450. The pair might even climb higher to test the upper boundary of the senior channel in the 1.07/08 territory.
The pair trading sideways for the last four days suggests that the market sentiment might change in favour of bulls soon, especially given that this area is likewise reinforced by the weekly S1 and the monthly S2.
In order to confirm this scenario, the Australian Dollar has to overcome two significant resistance levels, namely, the 55– and 100-hour SMAs and the weekly PP at 1.0250 and the 200-hour SMA at 1.03. A possible upside target is a downward-sloping trend-line circa 1.0450. The pair might even climb higher to test the upper boundary of the senior channel in the 1.07/08 territory.