FxNews—The U.S. Dollar dipped to the May 16 low at about 1.341 against the Singapore dollar this week. As of writing, the USD/SGD currency pair trades at approximately 1.342, slightly above the May 16 low, which is the key support that holds the price to dip further.
The stochastic oscillator in the USD/SGD daily chart signals the market is oversold by hovering below the 20 level, meaning the market might bounce from this point. The daily chart below demonstrates the key Fibonacci levels and technical indicators employed in today’s analysis.
USDSGD Technical Analysis – 12-July-2024
We zoomed into the 4-hour chart to examine the price action and the technical indicators more closely. As depicted, the indicators suggest the primary trend is bullish, but the Singapore dollar is overpriced against the U.S. Dollar.
- The awesome oscillator‘s last bar turned green but is still below the signal line, implying that the bearish trend is weakening.
- The relative strength index indicator is below 30, recording 18 in the description, suggesting the market is oversold.
- The stochastic oscillator aligns with RSI (14), hovering below 20, signaling an oversold condition.
- The price is below the 50 and 100-period simple moving average, indicating a robust bearish trend.
USDSGD Forecast – 12-June-2024
From a technical standpoint, the primary trend is bearish, but due to stochastics and RSI’s signal, the market is oversold and could bounce from the 1.3411 key support level. That said, with the USD/SGD rate above 1.3411, the price might rise to test the 23.6% Fibonacci at 1.3455. Furthermore, if the buying pressure exceeds 1.3411, the next resistance level will be at a July 8 low at approximately 1.348, a level backed by the 38.2% Fibonacci.
Notably, if the USD/SGD price dips below the 1.3411 key resistance, the consolidation outlook should be invalidated.
USD/SGD Bearish Scenario
1.3411 is the primary support that kept the price from declining further. If the bears (sellers) push the price below 1.3411, the downtrend will likely extend to the next supply zone at 1.335, followed by the March 21 low at 1.336.
Notably, the bearish scenario should be invalidated if the price exceeds the key resistance level at 1.3482.
USD/SGD Key Levels – 12-July-2024
Traders and investors should closely monitor the key levels below to make informed decisions and adjust their strategies accordingly as market conditions shift.
- Support: 1.3411 / 1.338 / 1.336
- Resistance: 1.345 / 1.348
Disclaimer: This technical analysis is for informational purposes only. Past performance is not necessarily indicative of future results. Foreign exchange trading carries significant risks and may not be suitable for all investors. Always conduct your research before making any investment decisions.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
