USDSGD has been travelling gradually upward in an equidistant channel over the last two weeks of September. As the month is coming to an end, we are seeing the price of USDSGD approaching the upper band of the equidistant channel. Immediate resistance levels can be seen at 1.3815 and 1.3825.

Looking at the four-hourly charts, price is further hemmed in on the top by the 200-day moving average which will likely see a confluence with the 1.3825 resistance level. It is of our view that this confluence of resistance will see the USDSGD pushed downwards to test support levels around 1.3785.

This gains more weight when looking at the Dollar Index Chart where it has reached a resistance level around the 99.08 mark and is likely to retrace to the next support level in the region of 98.60. However, we expect that this move down is just a short-lived retracement to find support before it heads higher. This is notably highlighted by the fact that the price of USDSGD is currently supported by the 100-day moving average and on the daily charts, the price of USDSGD is well above both the 100 and 200-day moving averages.