AUD/SGD 4H Chart: Channel Down

The first monthly line to offer  support to the pair is found at 0.9832 this week, and it seems to be building a reliable demand for the Australian Dollar. It is estimated to be breached in the nearest future, given a number of clear signals in favour of a plunge. Firstly, AUD/SGD is remains heavily overbought in the SWFX market. Opposite to the USD/DKK cross, here 72% of all open positions are set long on the Aussie. Adding to that, both short and long-term technicals foresee a continuation of the bearish correction. By closing below the monthly S1, the next aim should be the pattern's lower edge at 0.97. From here the base scenario will imply a recovery in the direction of a resistance cluster at 1.0080/1.0108.