FxNews—The U.S. dollar turned bullish against the Singapore dollar after the conversion rate broke above the descending trendline at 1.293, the September 17 high.
As of this writing, the USD/SGD price is in a robust bull market at approximately 1.303. The 4-hour chart below demonstrates the price, support, and resistance levels, as well as the technical indicators utilized in today’s analysis.
USDSGD Technical Analysis – 7-October-2024
The primary trend should be considered bullish because the USD/SGD price is above the 50- and 100-period simple moving averages. However, the Stochastic oscillator hovers above 80, depicting 89 in the description, meaning the market is overbought.
Additionally, the Relative strength index indicates 74, signaling a saturated market, backing the Stochastic oscillator.
Overall, the technical indicators suggest the primary trend is bullish, but the USD/SGD price is overbought, and the trend could reverse or consolidate near the lower support levels.
USDSGD Forecast – 7-October-2024
The immediate resistance is at 1.307, and the critical resistance level rests at the 61.8% Fibonacci retracement level of the AB wave. Since the RSI 14 and Stochastic oscillator roam in the overbought territory, it is not advisable to join the bull market when it is saturated with buying pressure.
Hence, we expect the Singapore dollar to erase some of its recent losses near the lower support levels. In this scenario, the USD/SGD price can potentially dip to the immediate support at 1.3, the September 19 high.
Furthermore, if selling pressure pushes the price below the 1.30 mark, the next critical support, which is an active pivot, will be the %50 Fibonacci retracement level of the AB wave at 1.293.
Please note that the bull market should be invalidated if the USD/SGD price dips below 1.293, which is supported by the 100-period simple moving average.
USDSGD Support and Resistance Levels – 7-October-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: 1.30 / 1.293 / 1.290 / 1.279
- Resistance: 1.307 / 1.310 / 1.315
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.
