© Dukascopy Bank SA
Although USD/SGD took a major hit after approaching the resistance at 1.2830 (Jan high), the support at 1.2680 was able to prevent a deeper decline. As a result, the pair formed a descending triangle and subsequently has broken it to the upside.
Right now we expect USD/SGD to come back to the down-trend at 1.2740 and then resume the rally. However, there are many tough resistances overhead. The first supply is represented by the Mar high and weekly R1 just below 1.28, followed by the mentioned 1.2830. But the main obstacle for the US Dollar in the coming days is likely to be the 2013 high at 1.2860.
© Dukascopy Bank SA