USDSGD Triple Top Pattern Emerges; USDTHB Experiences a Dreaded Death Cross; USDTWD Breaks Sideways Wedge, But Stays Within Bounds
Before getting into the next week of trading, let’s take a look at some Southeast Asian currency pairs against the US dollar.
USDSGD Triple Top Pattern Emerges
In Singapore, the currency pair against the US dollar closed on Friday with a triple top pattern indicating a bearish reversal and possible future breakthrough of floor support:
Not surprisingly, this pair overshot its RSI into overbought territory and just could not eek above its resistance at 1.3618. This is a real problem for the US dollar now as the price action simply cannot move above this resistance level. Now, strong levels of support remain between 1.3503 and 1.3409. The next level of support below this is 1.3472 and 1.3469, but this level is much weaker and much less convincing than the first. However, let’s get past the first level of support before getting ahead of ourselves. Overall, technicals indicate a strong sell on this pair.
USDTHB Also Hits Resistance Edges Down
Meanwhile, the US dollar to the Thai baht also hit significant resistance between 31.962 and 31.922 and now continues its trend downward as well:
Although this pair is significantly above its 200 day moving average, the consecutive days up back in the end of February brought its RSI into extremely high overbought territory. Also shown below is the death cross this pair witnessed when the 50 day average moved above its 200 day moving average:
This and the overall long-term downward trend suggests this pair deserves a short position as well.
USDTWD Breaks Sideways Wedge, But Stays Within Bounds
Meanwhile, the USDTWD broke its sideways wedged that had developed over the span of several months, but this currency pair is still acting quite strange not moving near its upper or lower bounds and giving us regularly large wicks:
Effectively, what this is telling us is that this pair is highly illiquid and exhibit large degrees of short-term volatility because of this illiquidity. To be honest, this may be one of the last times I cover this pair as trading opportunities are quite low since large degrees of volatility are so low.