USD : Technical Outlook
(Thu, 17 Sept 2020).
- USD/SGD may turn higher after bullish Double Bottom
- USD/MYR eyeing a bullish Falling Wedge chart pattern
- USD/IDR consolidating, USD/PHP could bounce next
SINGAPORE DOLLAR TECHNICAL OUTLOOK
After recently succumbing to weakness, the US Dollar could reverse higher against the Singapore Dollar. USD/SGD seems to be forming a Double Bottom bullish chart pattern. Prices may bounce off the 1.3558 – 1.3571 support zone given the presence of positive RSI divergence. The latter is a sign of fading downside momentum. A subsequent climb above the neckline (1.3690 – 1.3718) may open the door for a further push towards the 1.3805 – 1.3820 inflection zone.
MALAYSIAN RINGGIT TECHNICAL OUTLOOK
The US Dollar remains in a downtrend against the Malaysian Ringgit. However, USD/MYR seems to be in the process of forming a bullish Falling Wedge chart pattern. A breakout above the ceiling of the wedge could open the door to a turnaround given a confirmatory upside close thereafter. That would place the focus on the September 9th high at 4.1740. Otherwise, a push under the 78.6% Fibonacci extension at 4.1226 could open the door to eventually revisiting the current 2020 low at 4.05.
INDONESIAN RUPIAH TECHNICAL OUTLOOK
The US Dollar seems to be in a neutral setting against the Indonesian Rupiah. USD/IDR recently rejected the key 14915 – 14975 resistance range as well as the former rising trend line from June. Intervention from the Bank of Indonesia seems to be playing a role here. This also follows negative RSI divergence. Yet, the 50-day Simple Moving Average (SMA) could reinstate the focus to the upside, perhaps pushing prices to retest aforementioned resistance. Otherwise, further losses expose the key 14525 – 14563 support range below.
PHILIPPINE PESO TECHNICAL OUTLOOK
The US Dollar could attempt to push higher against the Philippine Peso next. That is because USD/PHP paused recent losses once again around lows from November 2016. This makes for a key range of support between 48.28 and 48.36. Positive RSI divergence also shows that downside momentum is fading, which could precede a push higher. Such an outcome places the focus on the October 2016 high at 48.66 and then the 50-day SMA. Otherwise, downtrend resumption exposes the October 2016 low at 47.92.
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