© Dukascopy Bank SA
Since the beginning of November the Australian Dollar has been inclined to lose value relative to the Singapore Dollar. As a result, the currency pair has formed a channel down, meaning the bearish tendency is likely to be preserved for the foreseeable future.
Just recently, however, the price has run into the lower boundary of the downward-sloping corridor, indicating there is a good chance of a bullish correction before AUD/SGD resumes the long-term decline. This rally, if initiated, should come to an end near a formidable resistance level at 1.1297, being that it is created by the weekly pivot point and the down-trend line.
© Dukascopy Bank SA