Nov. 18 (Bloomberg) -- The dollar may advance to S$1.32 versus Singapore’s currency should it post another “long white candle” on its chart and sustain gains above this week’s low, said Winston Tang, technical analyst at Forecast Pte.
The dollar has formed three consecutive weekly white bars since the five days ended Nov. 4 on its candlestick graph, which tracks the distance between a currency’s opening and closing prices over a given period. Bars are white when the currency’s closing price is higher than the opening rate. The greenback slid on Nov. 14 to S$1.2752, its lowest level this week, according to data compiled by Bloomberg.
“On the candlestick chart, we’ve seen higher closes and white candles,” Singapore-based Tang said. “We need to see a long white candle to propel this current strength towards S$1.32. The potential now is a stretch toward that barrier.”
The dollar was little changed from yesterday at S$1.2978 as of 7:27 a.m. Singapore time. It last reached S$1.32 on Dec. 20, when it climbed to as high as S$1.3228. It approached the level on Oct. 4, rising to as much as S$1.3199, Bloomberg data show.
In technical analysis, investors and analysts study charts of trading patterns to forecast changes in a security, commodity, currency or index.
--Editors: Nate Hosoda, Jonathan Annells
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