USD/SGD 4H Chart: Ascending Triangle

Following a one and a half figure long sell-off, USD/SGD entered a consolidation phase, which in turn appears to be an ascending triangle. The pattern implies strong resistance at 1.2540, but at the same time there is supposed to be a rising support trend-line at 1.2521, reinforced by the 200-period SMA and weekly pivot point.

Judging by the technical indicators, a break-out to the upside is more likely to occur than a dip, but we should note that the market is bearish since February. Moreover, most of the SWFX market participants doubt the ability of the U.S. Dollar to appreciate—60% of open on USD/SGD positions are short.