USD/SGD: Undergoing a steady uptrend - SocGen

Analysts at Societe Generale notes that aAfter taking support at monthly MA near 1.3330/1.32 earlier this year, USD/SGD has been undergoing a steady uptrend.

Key Quotes

“The pair is now close to an intermittent hurdle of 1.4490/1.4530 which corresponds with decadal resistance line and the 38.2% retracement of whole down trend during 2001 and 2011. The pair appears to be near a paradigm shift level as it is forming a broad inverted H&S with confirmation level at 1.4490/1.4530.”

“Short term though, the pair is flirting with January highs and appears to have met initial projection for the fifth wave from an Elliot standpoint. A near term consolidation can’t be ruled out. It will take a definite break beyond 1.4490/1.4530 to confirm the pattern and indicate a much larger up move. 1.4350 will be an immediate support while lows formed earlier this month at 1.42/1.4150, also a steeper upward trend will be an important level.”