US Dollar May Stage a Reversal Against SGD, Will IDR Follow?
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USD/SGD, Singapore Dollar, USD/IDR, Indonesian Rupiah - Talking Points
- USD/SGD is forming Falling Wedge bullish chart pattern
- Daily close higher may reverse USD downtrend vs SGD
- USD/IDR consolidation under falling trend line prolongs
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Singapore Dollar Technical Outlook
The US Dollar may be preparing to stage a lasting comeback against the Singapore Dollar. This past week, USD/SGD has been aiming cautiously higher after bouncing on the rising support line from February – blue line on the chart below. Recently, prices have turned lower after testing the falling trend line from late September with immediate support at 1.3609.
Taking a closer look reveals what appears to be a Falling Wedge that has been brewing since the beginning of September. This is typically a bullish chart pattern that with an upside breakout, could signal the reversal of the dominant downtrend from late August. In that case, keep an eye on resistance which could stand in the way at 1.3658. Otherwise, a daily close under 1.3558 prolongs the downtrend.
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USD/SGD Daily Chart
USD/SGD Charts Created in TradingView
Indonesian Rupiah Technical Outlook
The Indonesian Rupiah continues to trade largely sideways against the US Dollar. Though the dominant downtrend in USD/IDR is being kept intact by a falling trend line from April – red line on the chart below. A daily close under the key psychological barrier between 13848 and 13923 opens the door to extending declines. Otherwise, turning higher exposes the October highs (14185 – 14215).
USD/IDR Weekly Chart
USD/IDR Chart Created in TradingView
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--- Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com
To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.