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The Dollar has also been correcting lower versus the domestic currency of Singapore, but a recovery may begin sooner than expected near the 200-period SMA. At the moment this line is gradually inching upwards and will try to support the pair as soon as over the next few hours. Any failure here would imply a sell-off down to the pattern's lower trend-line at 1.4129, which is strengthened by the monthly pivot point. The latter scenario is, however, supported by SWFX market sentiment (75% bullish), which assumes the Dollar is relatively overbought. In case the 1.41 fails to contain a decline, then the focus will shift to Dec low at 1.3925 and Oct low at 1.3728, with monthly S1 and S2 acting as intermediate supports.
© Dukascopy Bank SA