US dollar struggling versus SGD

Analysts are not certain what to do with the USD/SGD zig-zag. They are pondering on the fact that the US$ upside momentum may be fading.

On a weekly chart, the Singapore Dollar weakened against its US counterpart to its lowest since July 2017. 

USD/SGD also closed just above near-term horizontal resistance at 1.38185. It also achieved its most aggressive climb over the course of one week since June at +1.11%. However, negative RSI divergence warns that upside momentum is ebbing.

USD/SGD WEEKLY CHART

“Zooming in on the daily USD/SGD chart, we can see that thus far the pair is struggling to hold on to its push above resistance,” said the analysts.

This followed the longest consecutive rising streak, at 6 days, since April 2017.

“Should the Singapore Dollar continue making gains against its US cousin, we may see it test near-term support at 1.37451 followed by a rising range dating back to June. Ascending above resistance exposes the June 2017 high,” they said.

The Wall Street Journal said the WSJ Dollar Index, which measures the U.S. currency against a basket of 16 others, fell less than 0.1% to 90.05.

The Norwegian krone rose 0.4% against the U.S. currency to 8.2362.

“The dollar fell Wednesday after Statistics Norway said that country’s inflation rate rose 0.6% in September after declining 0.4% the previous month,” wrote The Journal.