Weekly Chart:
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Set of corrections before bulls gain
The hourly time-frame has just sent a strong BUY signal with the 100-hour and 200-hour crossover again implying that an uptrend will be dominant overall. Furthermore, a small correction towards the broken channel line can be expected immediately before the triangle rebound takes place.
The 23.6% Fibonacci retracement of the September 1 drop has proven to be of significance, providing resistance at first, but now when broken it could serve as support for movements over the next hours. The main resistance, however, lies around the 1.362 Singapore dollar level, where the 55-hour SMA, 100-hour SMA and upper Bollinger Band clusters. In case it is broken, the rate will rally towards the channel line at 1.3636 just to plunge to the 1.3450/60 mark where the broken triangle line lies, encountering the 200-hour SMA at 1.3577 on its way.
Alternatively, the pair could skip the channel consolidation and target the broken triangle right away.
Hourly Chart:
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Severe fundamental volatility ahead
A set of fundamental data, most of which came out below expectations added to the 0.5% dip the pair experienced on September 1, and more significant numbers are to come today. Volatility induced by average hourly earnings, non-farm employment change, factory orders as well as the unemployment rate and trade balance data is set to shake the consolidated market over today's trading session.
Aggregate Technical Indicators:
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