USDSGD: Correction Time?

USDSGD trades 0.21 percent lower at 1.3817 region after the pair today tested the high from October 2018 at 1.3869 and retreats lower for a breath. USDSGD registered an impressive rally from the beginning of July as International Monetary Fund, cut its 2019 economic growth forecast for Singapore to 2% from 2.3% amid global trade war escalates. IMF expects Singapore’s economic growth to stabilize around 2.5% over the medium term.

USDSGD now has to face one strong resistance and that is the daily high at 1.3869, a break above will drive prices above the 1.39 mark. On the downside immediate support stands at 1.38 today’s low while next support stands at 1.37 the low from August 1st; a break below can accelerate the move down to 1.3642 the 200 day moving average. The RSI on the daily chart starts to point lower looking for an exit from the overbought area, so a correction at this price level is a possible scenario.Don’t miss a beat! Follow us on Twitter.