The USD/SGD pair initially tried to fall back below the 1.35 level during the session on Wednesday, but as you can see had enough buying pressure underneath it to turn things back around and form a slight hammer. This hammer is a very encouraging sign as it sits on top of a large, round, psychologically significant number, and it also shows continuation of the uptrend. I like the US dollar in general, so I don’t see any reason to go against it and I think that this pair will ultimately continue to go higher. After all, the Federal Reserve is by a wide margin one of the few relatively stable or hawkish central banks in the world right now.
Ultimately, I think this pair probably will find its way to the 1.38 level, and possibly higher given enough time. I believe that this market offers buying opportunities every time it dips, and you have to keep in mind that it is a relatively stable moving market. It doesn’t lend itself to have a lot of impulsive moves, so it’s very likely that this market will continue to be stable to the upside.
Massive amounts of support below
I believe that there are massive amounts of support below, as we have had such a nice uptrend. You can see that we have basically been grinding at a nice 45° angle for some time now, which is the perfect site of health in an uptrend. Nice and steady, and not overbought. I believe that every time we pullback, it will represent value of the US dollar. Although the Singapore dollar is a necessarily a currency that I don’t like, the truth of the matter is that it is in the US dollar, and that’s really all that matters right now the Forex world. Ultimately, I believe that this is a North American versus Asia play, and Asia right now is a little bit lackluster. Because of this, I think that we will continue to grind higher but the patient, this pair takes its time.
