This Week's Exotic: USD/SGD on the rise

The greenback seems to be very close to a recovery in regard to Singaporean Dollar, at least on a short-term approach. On 1 hour charts, it appears to be bottoming out and forming an inverse head and shoulders pattern just about to break its neckline, which lies at 1.3024, and which represents a 38.2 Fibonacci retracement from the recent down swing.

The projection of the head would bring us to 1.3105, well above the 61.8% retracement at 1.3077; this level can however be considered as a conservative target given the consolidation that took place around it two days ago.

On weekly charts, we see that the pair is turning back up from the middle pitchfork line, and we can expect a push to attain the upper downtrend line in the area of a 50-61.8 Fibonacci retracement (1.3550-1.3700), if the strong resistance at 1.3450 and upper pitchfork trendline is breached.