Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
AUD/SGD trades on a heavier note today, last -7 pips at SGD1.0426, with one eye on gyrations in USD/CNH. Today's losses come after the rate charted a bearish engulfing line candlestick pattern, which coincided with the RSI crossing below the 70 threshold, indicating imminent bearish reversal.
- A break below channel floor at SGD1.0374 would suggest that bears are indeed taking control. Next layer of support is provided by the 23.6% retracement of the Oct 20 - Feb 25 rally ay SGD1.0307. Bulls need a clean break above Feb 25 high of SGD1.0545 to see a broader resumption of gains.
Fig. 1: AUD/SGD - Daily
Source: MNI - Market News/Bloomberg
Longer-term outlook, however, remains bullish. The had brief hiccups back in Oct, but resumed gains after charting a bullish engulfing line pattern. It subsequently staged a clean break above its 50-MMA and the 76.4% recovery of the Feb 2017 - Mar 2020 sell-off and is now flirting with its 100-MMA at SGD1.0486. Momentum studies suggest that the rate is not yet overbought and has potential for a further rally.
- A move through the aforementioned 100-MMA would open up Jul 2017/Feb 2017 highs at SGD1.0933/1.0960, which provide a key bullish target. Bears need a fall through the 50-MMA at SGD0.9918 and Oct 2020 low of SGD0.9535 to jump into the driving seat.
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.