Technical Update - Singapore: USDSGD testing short-term support, will it hold?
Kim Cramer Larsson
Technical Analyst, Saxo Bank
USDSGD seems to have medium- to long term resistance at the 0.382 Fibonacci retracement of the 2001-2011 down trend around 145.
Trend is up supported by RSI above 60 indicating higher levels.
Short-term USDSGD is testing lower rising trend line and support at around 1.42. If USDSDG closes below 1.42 there is downside potential to the 0.618 retracement at 1.3980. However, the rising 55 SMA and 100 SMA indicate underlying bullish sentiment suggesting a possible correction could run out of steam around support at 1.1.4078-1.4055. Divergence on RSI supports the correction scenario.
If USDSGD breaks back above September peak at 1.4415 and RSI closes above its falling trendline the 1.45 resistance level is likely to be tested again and quite likely taken out for upside to strong resistance at around 1.5450.
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