CFD News

Top 2023 Trade: Best Could Well Be Over for USD/SGD

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The Singapore dollar’s multi-year weak point in opposition to the US greenback may want to properly be over and it should be set to prolong features in the coming year.

Let’s commence with the ultra-big image quarterly charts. A few noteworthy factors stand out. Since the rally commenced round 2014, USD/SGD has held under fundamental resistance on the 89-quarter transferring average. Despite the US greenback strength, the pair couldn’t clear any widespread rate pivot – the March 2009 excessive of 1.5580 being an essential one.

Furthermore, even even though the style used to be said on decrease timeframe charts, the Moving Average Convergence Divergence (MACD) indicator on the quarterly chart has flirted round zero in current years. That is, on the quarterly chart, USD/SGD used to be at first-rate in a range, as a substitute than trending up (see chart). In different words, the rally when you consider that 2014 was once corrective, instead than a reversal of the two-decade weakness. When the MACD indicator is decisively above zero it suggests bullishness, and vice versa.

USD/SGD Quarterly Chart
Chart Created Using TradingView

On the month-to-month chart, the story is similar. USD/SGD in September failed yet once more to destroy previous stiff resistance on the top facet of a sideway channel from early 2016 (at about 1.4500). The decrease area of the channel is a horizontal trendline from 2015 (at about 1.3150). Once again, the feeble momentum related with the soar in September used to be an indication that this year’s positive aspects in the pair have been greater of an oscillation inside the channel, and now not the begin of a new uptrend.

USD/SGD Monthly Chart
Chart Created Using TradingView

The decisive fall beneath necessary cushion on the 200-day shifting common implies that the pair should be headed towards the decrease aspect of the sideway channel. On the upside, USD/SGD faces stiff hurdle at the late-November excessive of 1.3860, roughly coinciding with the support-turned-resistance on the 200-day shifting average.

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