Singapore Central Bank’s foreign reserves at an all-time high and continue to increase. High reserves causing the Singapore Dollar to gain value and USDSGD’s upward moves to be limited despite the increase of the dollar index.
The price is still moving within the downtrend channel. 1.3450, the major support line which limits the down moves for two years now may turn to an important resistance. With the help of that resistance and increasing reserves, USDSGD may continue its fall in the bearish trend channel. 1.3440 – 1.3470 can be followed as a major resistance zone and this year’s bottom 1.3160 can be followed as key support in the coming days.