USD/SGD 1H Chart: US Dollar respects wedge
The US Dollar was trading in two patterns simultaneously, namely, a channel down valid since early October and a week-long ascending wedge. As apparent on the chart, the latter prevailed when the rate breached the upper channel boundary early on Friday.
In general, ascending wedge is a bearish pattern that should eventually push the rate lower. Thus, it is likely that the US Dollar reaches the weekly R1 and the 23.6% Fibo at 1.3610, reverses to the south and breaches the junior pattern near the 1.3570 mark.
The pair still faces the 55-, 100– and 200-hour SMAs, the 38.2% Fibo and the weekly PP along the way—a support area that is located near the aforementioned line.
In case of a breakout, the Greenback should initiate a new down, thus requiring to adjust to the upside the previously-drawn channel lines.
In general, ascending wedge is a bearish pattern that should eventually push the rate lower. Thus, it is likely that the US Dollar reaches the weekly R1 and the 23.6% Fibo at 1.3610, reverses to the south and breaches the junior pattern near the 1.3570 mark.
The pair still faces the 55-, 100– and 200-hour SMAs, the 38.2% Fibo and the weekly PP along the way—a support area that is located near the aforementioned line.
In case of a breakout, the Greenback should initiate a new down, thus requiring to adjust to the upside the previously-drawn channel lines.