The U.S. dollar may be set for a further advance against its Singapore counterpart should it sustain gains above its lowest level this month, Forecast Pte. said, citing technical patterns.
The greenback dropped to as low as S$1.2608 on July 5, the weakest since May 15, according to data compiled by Bloomberg. The level is the base of the currency’s trading range in the past 2 1/2 weeks, according to Winston Tang, a Singapore-based technical analyst.
“The anticipation is that we’ll see more of an upside break as long as it sustains above” the July 5 low, Tang said. The first target may be the S$1.2749 high reached on July 6 and a breach of this level “will trigger more upside momentum,” he said.
The dollar was at S$1.2644 as of 7:54 a.m. in Singapore. S$1.2749 is the U.S. currency’s strongest level this month, Bloomberg data show. It climbed to as high as S$1.3006 on Jan. 9 this year and has dropped 2.5 percent against its Singapore counterpart since Dec. 31.
In technical analysis, investors and analysts study charts of trading patterns to forecast changes in a security, commodity, currency or index.
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