USD/SGD in a descending channel until November
Although the US Dollar recently rebounded against the Singapore Dollar, the currency pair is still set to decline in the long term. The reason for that is the fact that the pair is still trading simultaneously in two descending channel patterns.
The most junior pattern shown on the chart was discovered only recently, and it is now providing the opportunity to forecast approximate path of the currency pair in the near future. Until the end of October to be precise.
Meanwhile, the pair is also descending in a dominant pattern, which is aimed at the support line of a dominant channel up pattern, which is located in the zone from 1.3450 to 1.3500.
The most junior pattern shown on the chart was discovered only recently, and it is now providing the opportunity to forecast approximate path of the currency pair in the near future. Until the end of October to be precise.
Meanwhile, the pair is also descending in a dominant pattern, which is aimed at the support line of a dominant channel up pattern, which is located in the zone from 1.3450 to 1.3500.
USD/SGD has formed two channels simultaneously. The exchange rate is currently trading in an up-wave in a senior channel down valid since early December, 2016. This particular movement has resulted in the formation of a short-term ascending channel.
Market sentiment is strongly bullish; this is likewise supported by up-trend signals. However, converging technical indicators suggest that a correction southwards should start in the nearest time.
The pair was located between the monthly PP and the weekly R1 on Wednesday morning. The rate could still go up to the former prior to falling down to support clusters set by the 61.9% Fibonacci retracement, the 55– and 100-hour SMAs circa 1.3510 and the 200-hour SMA, the 50.0% Fibo and the monthly R1 at 1.3480. In case the latter is breached, traders could expect a further decline until the bottom boundary of the junior channel.