After testing the senior channel near 0.9970 early in May, the Aussie gained momentum against the Singapore Dollar and began moving higher in an ascending channel. This move has been gradual with the pair being located near the 1.02 mark at the time of this analysis.
It is expected that the pair continues to approach the upper boundary of the senior channel located near the 1.06 mark.
In the short term, however, the Aussie might fail to surpass the 100-day SMA at 1.0228 for a few sessions. This could allow bears to drag the rate lower during the remainder of the week. It is likely that the pair continues to respect the junior pattern and thus reaches for its lower boundary circa 1.0120. The monthly PP and the 100-period (4H) SMA are likewise located at this level.