Good day FX friends! I’m back and kicking once again! Anyway, in today’s forex feature is a technical update on the USDSGD pair – that’s the greenback versus the Singapore dollar. In case you do not know, the Singapore dollar (SGD) has been gradually beating the US dollar’s ass since March of 2009 much like what Manny Pacquiao was doing to Antonio Margarito in their fight last November 13. Notice, however, that the Sing’s ascent over the USD has hastened by June of this year up until recently. Over the past several weeks, the SGD has lost some of its steam and it even appears that it is consolidating into a possible inverted head and shoulders formation. If the USD continues to show some strength and the pair manages to break above the pattern’s neckline at around 1.3100 the it could swing back to at least 1.3350. On the flip side, a failure to move above the said level could just send the pair back in consolidation mode. In any case, whether the pair breaks out and reverses on the medium term, the long term bias would still be bearish for the it (bullish for the Singapore dollar and bearish for the USD) since it would still be riding on a long term downtrend.
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