Technical analysis of USD/SGD for February 25, 2014

The USD/SGD pair is trading at the 1.2605 level. In the daily
chart, the pair has broken the supporting trend line and now is trading below the short
term moving averages. But it holds its 50.0 fib level and 200DEMA at the
level 1.2555. Last week, the pair formed a nice base at the level of 1.2560. During three consecutive
days, it was taking the support and finally flew back towards the descending trend line
at the level 1.2670. The RSI looks positive in the daily chart.

Positional basis:

S1 1.2560 R1 1.2640

In the hourly chart, the pair made a triple top at the level
1.2610 in Asia’s trading session on Tuesday. The RSI signs a positive divergence in
the chart. We could expect a nice pullback from the cmp. It is likley to gain more strength
if it trades above the level 1.2610.

Intraday levels:

S1 1.2575 R1 1.2610

S2 1.2560 R2 1.2630

Recommendation:

Buy with sl 1.2540 for the targets 1.2670
and 1.2685.

The material has been provided by InstaForex Company – www.instaforex.com