Singapore Greenback, USD/SGD, AUD/SGD, NZD/SGD, SGD/CNH – Technical Outlook:
- USD/SGD is going through stiff resistance at 2020 highs
- AUD/SGD is diminished in a spread
- NZD/SGD prepared to attain its head and shoulders goal
- SGD/CNH . slight return in
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USD/SGD Technical Forecast – Bullish
The Singapore greenback could weaken in opposition to the US greenback, however it seems to be properly positioned to strengthen additional in opposition to a few of its regional friends.
USD/SGD broke above the higher fringe of an rising channel (which got here in round 1.4120) final week, opening initially in direction of April 2020 excessive at 1.4415, with robust resistance at 2020 excessive at 1.4646, an extended opening. -Time period close to the highest fringe of time, a barely upward sloping channel from 2016. A breakout from a consolidation sample signifies an uptrend within the development in direction of the measured goal, usually the width of the sample. The channel width signifies a transfer in direction of 1.4600.
Nonetheless, a draw back divergence (rising value coupled with weak momentum) on the 60-minute chart means that USD/SGD could consolidate barely within the close to time period earlier than resuming its uptrend. There may be early assist at Monday’s low of 1.4290 and robust assist on the September 22 excessive of 1.4200. USD/SGD might want to break beneath July excessive of 1.4100 to reverse upside strain.
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USD/SGD Weekly Chart
Chart created utilizing TradingView
AUD/SGD Technical Forecast – Bearish
The AUD/SGD has been comparatively steady, drifting decrease in a spread over the previous two years. The decrease fringe of the channel, having fallen barely since 2021, now stands at round 0.9265, whereas the higher edge is in a downtrend, now close to 1.0050.
AUD/SGD is now testing the decrease fringe of the channel. A decisive break beneath may pave the way in which for 0.8965 (61.8% retracement of 2020-2021 rally). The trajectory of the channel will level in direction of a draw back correction in direction of 0.8300, though the breakout shouldn’t be an ideal deal. On the upside, the AUD/SGD is going through stiff resistance at its January low of 0.9450. Till this resistance is damaged, the bias for AUD/SGD stays beneath.
AUD/SGD Weekly Chart
Chart created utilizing TradingView
NZD/SGD Technical Forecast – Bearish
NZD/SGD is poised to retest 2020 low of 0.7924. It’s also beneath the July low of 0.8510 assist earlier this month. Earlier in 2022, the cross broke beneath the important horizontal trendline resistance at 0.8850, triggering a significant head and shoulders-type topping sample (left shoulder at July 2020 excessive, head at 2021 excessive, proper shoulder at July 2022 excessive). ), pointing to a fall to the 2020 low of 0.7924.
On the upside, NZD/SGD faces preliminary resistance on the 10-day EMA (now at round 0.8280), adopted by Monday’s excessive of 0.8250. To fade the medium time period bearish outlook, NZD/SGD will, at the very least, rise above robust resistance at July’s low of 0.8510.
NZD/SGD Weekly Chart
Chart created utilizing TradingView
SGD/CNH Technical Forecast – Impartial
As SGD/CNH is approaching key assist, damaging divergence on the day by day and weekly charts signifies that the six-month bullish development is wanting weakening. A brief-term withdrawal can’t be dominated out.
SGD/CNH is approaching resistance on the median line of the ascending channel since 2018 (see chart). Whereas the cross is at a brand new multi-week excessive, the 14-week Relative Power Index (RSI) is close to its mid-2022 excessive (that’s, it has not made any significant new highs). Lack of momentum is commonly a warning sign for a short-term retracement as the value continues to say no.
Any break beneath the Could excessive of 4.9415, coinciding with the 200-week SMA, would point out that the upward strain has eased for now, pointing to some consolidation within the close to time period. A reversal of the medium-term uptrend is unlikely with the cross above the 200-day SMA (now at 4.80).
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SGD/CNH Weekly Chart
Chart created utilizing TradingView
— Written by Manish Jaradi, strategist at DailyFX.com
