USD/SGD: Bullish momentum seen

FROM The weekly timeframe perspective, the USD/SGD pair started tumbling from the Dec 2016 high all the way to the bottom of 1.3000 (Psychological Round Number) where it found support to prevent the pair from further decline.

Thereafter, prices recovered approximately 50 per cent from the low and turned range bound. USD/SGD has since undergone a contraction of range and currently stands at a key support level where prices are likely to rebound and continue its move to the upside.

During the phase of range contraction, the highs and lows seem to be moving into convergence, leading to the formation of a symmetrical triangle pattern. Typically, a symmetrical triangle is identified as a non-directional bias pattern where a breakout or breakdown has an equal chance of occurring. However, before an actual break occurs on either side of the triangle, the upper and lower bounds serve as possible points of resistance and support, respectively.