Upward trend on horizon for USD/SGD pair

Published Sun, Feb 16, 2020 · 09:50 PM

SINCE the beginning of 2020, the USD appears to have bottomed out, and has been seeing continued strength. This was largely due to the Fed's hawkish turn towards the end of last year, where it expressed its desire to keep rates unchanged, at least through 2020, and widely suggested that the US economy was in a healthy state.

Coupled with the unexpected emergence of the Covid-19 incidence, the USD appears to be propped higher as well, due to worries about the spread of coronavirus causing markets to look towards safe-haven currencies. The strength of the USD was more apparent in the USD/SGD pair, as both the fundamentals and technical indicators are pointing towards a brighter prospect.

Firstly, a "golden cross" candlestick pattern appears to be in the marking. This phenomenon occurs when the short-term moving average (50 EMA) crosses above the long-term moving average (200 EMA), and is deemed to be a bullish …