USDSGD – Short term target is at 1.2350/1.2300
A larger corrective wave from 1.2000 (Jul’11 low) may be unfolding in a multi-month triangle consolidation within a range of 1.3200 and 1.2300. The setback from 1.2970 (June high) could be a wave [D] which could test the 1.2350/1.2300 support. A break above 1.2645 would refocus on the 1.2900/1.2970 resistance in a wave (E). A close below 1.2280 however favours bears and retests the 1.2000 support initially.
The pair has renewed its down trend from 1.2645 last week. Downside focus is now on 1.2400 ahead of key 1.2350/1.2300 support where bulls are likely to fight back. The 1.2490/1.2580 resistance looks to cap strength now (watch the daily trendline resistance). A reversal above however refocuses on 1.2645. A close below 1.2300/1.2280 would extend the bear run.
Anantharajan .P, CMT (Technical Strategist, Precise Trader)