USD/SGD 1H Chart: Pair reaches new one-year high
The US Dollar has gained 3.30% against the Singapore Dollar during the past few weeks. This strong appreciation allowed the pair to reach a new one-year high and provide another confirmation of the upper channel line at 1.3727 early in July.
By mid-Thursday, the Greenback had returned to re-test this high and subsequently breached it to test the 1.3740 mark. Technical indicators remain bullish for the following week, suggesting that a test of the senior channel near 1.39 may follow during this time. The weekly R3 is located nearby at 1.3875.
This bullish momentum could be preceded by a slight correction south down to the 55– and 100-period (4H) SMAs located in the 1.3650 area.
By mid-Thursday, the Greenback had returned to re-test this high and subsequently breached it to test the 1.3740 mark. Technical indicators remain bullish for the following week, suggesting that a test of the senior channel near 1.39 may follow during this time. The weekly R3 is located nearby at 1.3875.
This bullish momentum could be preceded by a slight correction south down to the 55– and 100-period (4H) SMAs located in the 1.3650 area.
Following a three-week period of consolidation, the US Dollar finally managed to pick up momentum against the Singapore Dollar on Thursday and consequently advance 1.10% within two trading sessions. This move happened after the pair reached the upper boundary of two different-scale channels.
By mid-Monday, the Greenback had reached the upper boundary of the junior channel and the 50.00% Fibonacci retracement near 1.3780. This short-term appreciation has pushed technical indicators in the overbought territory. This means that a correction south is likely to occur soon.
Even if bulls still move the rate higher during the following hours, the bearish sentiment should take over the market later in the week and target the 55-, 100– and 200-period (4H) SMAs at 1.3650. The bottom boundary of the senior channel is likewise located there.