USDSGD develops a downward channel

Afternoon traders,

Following the MAS’s latest unchanged policy towards our Singdollar, some talk emerged on the direction of the Singdollar. In my past posts on USDSGD, I issued the bearish call owing to a downward breakout from a symmetrical triangle. USDSGD then consolidated in a channel fashion (red channel below). 1.2700 acted as strong resistance all the while. Recent selling pressure pushed USDSGD down to below 1.2500. Price action has brought about a new chart pattern – a downward parallel channel (black channel below). At the very basic level, this tells us of continued general donwside as long as we remain inside the channel.

On another note, USDSGD is getting very close to a major support area – 1.2400. The breakout from the large symmetrical triangle stopped right at about 1.2410. With the USDSGD at 1.2480 now, there is some room for downside but bear in mind the strong support level. In the longer run, I will stick to my expectation for USDSGD to continue down to all-time record lows.

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.

 

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