© Dukascopy Bank SA
Following a protracted November-January rally, the trading range of USD/SGD started to narrow. As a result, the currency pair formed a symmetrical triangle with the downtrend resistance at 1.2684 and the up-trend support at 1.2614.
However, given that the price has already reached the apex of the pattern, there is a high probability of a break-out in the nearest future. Considering that most of the technical indicators are sending ‘buy' signals, it is more likely to be to the upside, through the monthly PP towards the monthly R1 at 1.2784. At the same time, the market also seems to be bullish with respect to the U.S. Dollar—66% of open positions are long
© Dukascopy Bank SA