Singapore Dollar Looking Tired?

USD/SGD has recovered some 38.2% of the 2001-2008 losses and it could soon be time for bulls to take a backseat as the market corrects some of its gains.

• MONTHLY CHART: The recovery off the 1.3438 Jul low has been impressive so far – but the market seems to be sticking at the 38.2% level. (There is also a resistance band on the Weekly chart, not shown here)
• DAILY CHART: Current action remains in a s/term bull channel, overhead resistance implied firstly by a Fibo projection around 1.5520, ahead of the channel top above 1.5700 now. The impulsive upmove from the Jul low seems to comprise 5 waves, the last of which is unfolding now, after late Oct support was found above the 1.4475 11-Sep high (which remains a key support). Characteristic tiredness of this ‘last’ leg is indicated by the negative RSI divergence that is now apparent – a break below the first rising support line, around 1.5050, would be an initial bear sign. [For the complete and illustrated version of this and future Updates be sure to sign up at www.sevendaysahead.com]