Originally published by AxiTrader
USD/SGD has been in a strong downtrend since reaching a high around 1.4545 in early January this year.
Over the course of this 10-month down move, it made a pin bar low around 1.3395 in early September before rallying to a high around 1.3690 last Friday where it broke, but failed to hold above the resistance line from January's high.
That reinforces the downtrend in USD/SGD remains the dominant trend. But having made a low in the vicinity of the 2016 low there are signs that in a broader context USD/SGD is trying to bottom.
Here is a look at the weekly and daily charts.
As long as price stays above the 1.3300/15 low from 2016 USD/SGD appears to have bottomed on a medium-term - weekly - basis. My system went long a few weeks back and overall suggests higher prices are still in the offing with a move to 1.3800 thee 38.2% retracement of the big down move and my current target.
Closer to hand through the dailies suggest 1.3530 needs to hold to avoid a deeper retracement toward tentative trendline support at 1.3440. I say tentatively because it is only two touches and has yet to be confirmed.
Only a break of Friday's highs around 1.3690 would turn the outlook positive again.
USD/SGD looks like it has some wood to chop if it is to grind higher toward my weekly target.
Have a great day's trading.