The Singapore Dollar is set to continue its range-bound trading pattern. For the past 4 weeks, this pair has moved in a tight range between 1.4160 and 1.3888. I suspect that this range will continue into September.

Reason number one is that the resistance near 1.41, which can be traced all the way back to 2011, has put a lid on prices. It has stopped the upward moving trend. This brings us to the second reason. Uptrends rarely switch into downtrends right away without some consolidation in between. With the upside capped at 1.41 and a downside move being the unlikely outcome, prices should stay right where they are.

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