USD/SGD: Rising wedge – OCBC

USD/SGD eased into Fri NY close and continued to trade on the back foot this morning. Pair was last seen at 1.3442 levels, OCBC FX analysts Frances Cheung and Christopher Wong notes.

Bearish divergence on MACD and rising wedge pattern are forming

“Daily momentum is mild bullish but rise in RSI moderated. Bearish divergence on MACD and rising wedge pattern appear to be forming. Technical patterns point to signs of bearish pullback in the near term. Support at 1.3340 (200 DMA), 1.3290 (61.8% fibo retracement of Jun high to Oct low).”

“Resistance at 1.3490, 1.3520 levels. Policy uncertainties associated with Trump policies, swings in RMB and JPY should continue to drive USDSGD in the near term. S$NEER was last at 1.27% above modelimplied mid.”