© Dukascopy Bank SA
USD/SGD confirmed its bullish intentions in the second part of November, when the currency pair respected the 200-period SMA. Since then (already for 150 bars) the exchange rate has been trading between the two rising trend-lines that constitute a bullish channel.
Right now the price is approaching the upper boundary of the pattern at 1.2618. There the resistance is expected to prompt a sell-off, though it must be noted that the medium-term outlook will remain positive as long as the key support at 1.2491 stays intact. This is a high probability event, considering that the demand area is formed by the up-trend, weekly S1 and the long-term moving average.
© Dukascopy Bank SA