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US Dollar Faces Reversal Hint as USD/SGD and USD/MYR Eye Resistance

US Dollar Faces Reversal Hint as USD/SGD and USD/MYR Eye Resistance

Daniel Dubrovsky, Senior Strategist

US Dollar, USD/SGD, USD/MYR, USD/PHP – ASEAN Technical Analysis

  • US Dollar may see a pause in its aggressive advance against ASEAN FX
  • Singapore Dollar offers technical signals that may precede a comeback
  • USD/MYR flirting with near-term rising line as USD/PHP eyes support

US Dollar, Singapore Dollar, Malaysian Ringgit, Philippine Technical Outlook

The US Dollar may be at risk from a technical standpoint against some of its ASEAN peers such as the Singapore Dollar, Malaysian Ringgit and Philippine Peso. On the chart below is the Greenback’s average performance in USD/SGD, USD/MYR, USD/PHP and USD/IDR. An Evening Star candlestick pattern emerged which is a bearish formation. A confirmatory downside close may pave the way for a pause in the Dollar’s aggressive rise as of late if coronavirus fears take a backseat.

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ASEAN-Based US Dollar Index

ASEAN-Based US Dollar Index

ASEAN-Based USD Index Created in TradingView

Singapore DollarTechnical Outlook

USD/SGD also formed an Evening Star candlestick pattern after prices struggled to clear the psychological barrier between 1.3849 and 1.3879. The Singapore Dollar’s weakness was amplified recently after dovish commentary from the MAS. A daily close under this resistance range could place the focus on former resistance which may reinstate itself as new support between 1.3669 to 1.3692. Otherwise resuming the near-term uptrend entails taking out highs from August at 1.3942.

Learn more about how the MAS conducts monetary policy and what matters for the Singapore Dollar !

USD/SGD Daily Chart

USD/SGD Daily Chart

USD/SGD Chart Created in TradingView

Malaysian Ringgit Technical Outlook

The Malaysian Ringgit could be on the verge of finding some strength against the US Dollar from a technical standpoint. A near-term rising support line from late January could be taken out after USD/MYR found resistance at 4.1490. That places the focus on immediate support at 4.1225 followed by 4.1225. Resuming the uptrend entails taking out resistance which would then pave the way for a visit to 4.1630 followed by highs from November. However, disappointing fourth-quarter and 2019 GDP data may offer a near-term boost.

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USD/MYR Daily Chart

USD/MYR Daily Chart

USD/MYR Chart Created in TradingView

Philippine PesoTechnical Outlook

The Philippine Peso is once again testing a key support range against the US Dollar. USD/PHP finds itself sitting at the threshold of the psychological barrier between 50.40 to 50.52. The currency pair has seen prolonged consolidation since November. If support holds, the pair may see a revisit to the upper technical boundary which stands between 51.13 to 51.30. Clearing support does expose the midpoint of the Fibonacci extension at 50.10 which I have outlined on the chart below.

To stay updated on fundamental developments for ASEAN currencies, follow me on Twitter here @ddubrovskyFX

USD/PHP Daily Chart

USD/PHP Chart Created in TradingView

--- 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.

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