USD/SGD 1H Chart: Channel Down

Although this bearish channel is only 50 bars long, there is a good chance that the down-trend lines implied by it are going to be influential in the coming days. Consequently, we would expect the resistance at 1.2492 to prevent any rally from extending beyond that point and subsequently initiate a sell-off, which may potentially bring the price below the Apr 9 low, down to the lower edge of the pattern at 1.2440.

However, at the moment neither the technical indicators, which are largely mixed, nor the sentiment among the SWFX market participants, which is explicitly bullish with 73% of the open positions being long, support the negative outlook.