USD/SGD 1H Chart: Channel Down

USD/SGD proved to be unable to rally beyond 1.2528 on Aug 21, and the bears used this opportunity to take control of the market and subsequently forced the bulls to retreat. As a result, the pair has formed a channel down pattern, meaning that the Greenback is likely to continue losing value relative to its Singapore counterpart in the foreseeable future. For this outlook to hold, the down-trend line at 1.25 must remain intact, and in this case the Aug 28 at 1.2450 will be considered a near-term target. However, the SWFX market participants tend to believe that the bias is to the upside—74% of open positions are long.