Technical Analysis – USDSGD maintains sideways range; still bearish in medium term
March 12, 2019 4:25 pm
USDSGD has been stuck in a sideways range since January, stalling a downtrend that began from the 15-month high of 1.3863 in October 2018. The pullback came to a halt at 1.3434, slightly above the 50% Fibonacci retracement of the upleg from 1.2999 to 1.3863, and price action has since been hovering around the 38.2% Fibonacci at 1.3533.
The near-term bias is neutral to bearish, with the RSI falling but so far holding onto the 50 neutral level. Prices are currently being supported by the 50-day moving average around 1.3540. Slipping below this support would switch the short-term picture to a more decisively bearish one, but first, the bears would also need to tackle another obstacle at the 38.2% Fibonacci.
A drop below the 38.2% Fibonacci would open the way towards the January low of 1.3434 – a 7-month trough. If breached, it would signal a resumption of the medium-term downtrend and the next major support could be found at the 61.8% Fibonacci at 1.3329.
If, however, the 50-day moving average is defended, prices could bounce towards the 1.36 handle, which is the top of the sideways range and has been proving a difficult resistance to overcome. Clearing this hurdle would help shift the bias to bullish, and the pair is likely to meet further resistance at the 200-day moving average, currently at 1.3643, followed by the 23.6% Fibonacci at 1.3659. Even higher, the next target for the bulls could be 1.3765 – a previous resistance area.
USDSGD has been stuck in a sideways range since January, stalling a downtrend that began from the 15-month high of 1.3863 in October 2018. The pullback came to a halt at 1.3434, slightly above the 50% Fibonacci retracement of the upleg from 1.2999 to 1.3863, and price action has since been hovering around the 38.2% Fibonacci at 1.3533.
The near-term bias is neutral to bearish, with the RSI falling but so far holding onto the 50 neutral level. Prices are currently being supported by the 50-day moving average around 1.3540. Slipping below this support would switch the short-term picture to a more decisively bearish one, but first, the bears would also need to tackle another obstacle at the 38.2% Fibonacci.
A drop below the 38.2% Fibonacci would open the way towards the January low of 1.3434 – a 7-month trough. If breached, it would signal a resumption of the medium-term downtrend and the next major support could be found at the 61.8% Fibonacci at 1.3329.
If, however, the 50-day moving average is defended, prices could bounce towards the 1.36 handle, which is the top of the sideways range and has been proving a difficult resistance to overcome. Clearing this hurdle would help shift the bias to bullish, and the pair is likely to meet further resistance at the 200-day moving average, currently at 1.3643, followed by the 23.6% Fibonacci at 1.3659. Even higher, the next target for the bulls could be 1.3765 – a previous resistance area.
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