Singapore’s Central Bank foreign reserves are at all-time high levels. Yesterday, November’s reserves were announced as worth 353 billion dollars. Reserves are rising rapidly since March. Due to this advance, USDSGD is feeling the pressure to the downside.
A key level, 1.3450 which is supporting the USDSGD since 2018, broke to the downside in late November and the momentum is still favoring bearish traders.
The downward move may continue to lower band of the bearish trend channel, 1.3225.
For upward moves, 1.3450 can be followed as resistance. Above this level, the upper band of the trend channel which is currently at 1.36 can be targeted. But as long as the price stays in the trend, USDSGD can be expected to move to south.