- Summary:
- The currency pair is testing support at the rising trend line on the daily time frame and a double bottom has materialized on the hourly chart.
The daily and hourly charts of USDSGD seem to suggest that the currency pair may soon be headed towards 1.3700.
On the higher time frame, we can see that the currency pair is currently testing support at the rising trend line when you connect the lows for January 31, March 20, and July 1.
Meanwhile, the hourly time frame shows a double bottom chart pattern. This is typically considered as a bullish indicator as the market is unable to find sellers below a particular level. For USDSGD, the currency pair has bottomed out around 1.3555.
There are some bearish candlesticks that have materialized on the hourly chart. This suggests that we could see a pull back on the currency pair before the bulls begin their parade. Using the Fibonacci retracement tool and drawing from today’s low to today’s high, USDSGD may trade lower to 1.3605 and bounce off where the 38.2% Fib level is. The currency pair may also find additional support from the rising trend line, connecting the lows of November 7, November 8, and November 11. Lastly, this area is also the neckline of the double bottom.
If the bulls are strong enough, we could see USDSGD trade its way above the 1.3700 psychological handle and test its September 13 low at 1.3723. On the other hand, a break of support from the rising trend line could mean that the currency pair may drop to its October lows around 1.3555.Download our latest quarterly market outlook for our longer-term trade ideas.