USD/SGD 4H Chart: Ascending Triangle

At the end of the last month USD/SGD has shortly returned back into the ascending triangle and market participants could hope the buoyant sentiment was there to stay. However, the bulls failed near 1.4115 and the pattern has eventually been confirmed. The pair has already lost 200 pips since the first moment of this month and future losses are likely going to materialize. Firstly, technical indicators on 4H and weekly time frames are giving signals to sell the US Dollar. Moreover, the market is still overcrowded with the bulls, as 72% of all open positions are long. Initial obstacle to meet is the February low at 1.3863, reinforced by the monthly S1 at 1.3843. Success here will expose the October 2015 low at 1.3726.