USD/SGD 1H Chart: Channel Down

USD/SGD has recently failed to climb above 1.26 and since then has been bearish, which in turn has led to formation of the downward channel. But in order for the pattern to prove its worth, the falling resistance line, currently at 1.2492 together with the weekly S1, is required to stay intact and force the price to go further south.

However, the market is distinctly bullish towards USD/SGD—three out of four traders are currently holding long positions. And if there is going to be a break-out to the upside, the May 8 high and 200-hour SMA will become the first significant obstacle for the rally before the May 2 high and weekly R1 at 1.2569.