USDSGD – Nearing a medium term bottom?
A larger corrective wave from 1.2000 (Jul’11 low) may be unfolding in a multi-month triangle consolidation within a range of 1.3200 and 1.2300. The setback from 1.2970 (June high) could be a wave [D] which could test the 1.2350/1.2300 support. A break above 1.2645 would refocus on the 1.2850/1.2970 resistance in a wave (E). A close below 1.2280 however favours bears and retests the 1.2000 support initially.
USDSGD is attempting to stabilise from the psychological support at 1.2400. We believe that the pair may attempt for another swing down toward the strong support zone around 1.2345/1.2300 where a medium term bottom is likely to form. Bears need to protect the 1.2525/1.2580 resistance (watch the daily trendline resistance). A reversal above 1.2580/1.2645 confirms the medium term trend reversal.
