Further strength is likely
The Singapore Dollar (SGD) has risen together with the regional strength over the past couple of weeks.
We have recently mentioned a few stopping areas for the SGD’s recent weakness (see 29th September issue) and prices stopped marginally below the first target of 1.4355.
Since the low of 1.4366, prices have fallen below our ST target of 1.3866 to 1.3728 before the current rebound took place.
As long as 1.3815 holds, we expect the SGD to see ST weakness towards 1.4048, the previous fourth wave extreme.
We expect the SGD to continue to strengthen towards 1.3286-1.3633 (it could even test 1.3164) in the coming months and this strength is likely to be seen in the regional currencies as well.
Immediate weakness is likely but the longer term trend should see the SGD strengthen further
. (Read Report)
Source : CIMB Research
Labels: Forex, Technical Analysis