USD/SGD 1H Chart: Rate poised for gains
Following a breakout of a four-month ascending channel mid-December, the US Dollar started to weaken substantially against its Singapore counterpart. This bearish movement was bounded by two channel lines with several confirmations on each side.
After failing to reach the bottom line on January 15, the Greenback started to trade in a junior channel down. Even though this pattern was breached earlier today, it is unlikely that the pair moves below the 7.92 mark which is supported by the monthly S2 and the weekly S3.
Technical indicators are located in the oversold territory, thus also pointing to a soon increase in price. It is likely that the US Dollar is halted near 8.02 due to the combined resistance of the upper channel line and the 55-, 100– and 200-hour SMAs. However, the pair could subsequently breach the senior formation and go for a surge towards 8.30.
After failing to reach the bottom line on January 15, the Greenback started to trade in a junior channel down. Even though this pattern was breached earlier today, it is unlikely that the pair moves below the 7.92 mark which is supported by the monthly S2 and the weekly S3.
Technical indicators are located in the oversold territory, thus also pointing to a soon increase in price. It is likely that the US Dollar is halted near 8.02 due to the combined resistance of the upper channel line and the 55-, 100– and 200-hour SMAs. However, the pair could subsequently breach the senior formation and go for a surge towards 8.30.