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CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex financial instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Is the US dollar setting the stage for a turn lower?

US dollar is taking a turn against ASEAN currencies; USD/SGD, USD/THB showing signs of reversing lower and USD/IDR wedge breakout eyed, USD/PHP turning?

Source: Bloomberg

Singapore dollar technical outlook – slightly bearish

The US dollar weakened against the Singapore dollar this past week. USD/SGD closed under the rising trendline from August, opening the door to losses for the week ahead. This also occurred as prices were unable to hold a push above peaks from July. As a result, a wide zone of resistance was left behind between 1.4061 – 1.4107. Immediate support appears to be the 23.6% Fibonacci extension at 1.3944 before the 50-day Simple Moving Average (SMA) comes into focus. Subsequent losses would then open the door to revisiting the rising trendline from February.

USD/SGD daily chart

Source: TradingView

Thai baht technical outlook – slightly bearish

The US dollar also lost ground to the Thai baht this past week. USD/THB was unable to clear July highs, reinforcing the 36.738 – 36.949 resistance zone. A bearish Double Top also appears to be brewing, although the neckline won’t come into play until 35.052. Still, prices closed under the near-term rising trendline from August. Further downside confirmation could open the door to extending losses. That would place the focus on the 100-day SMA. Otherwise, resuming the uptrend would expose the 78.6% Fibonacci extension at 37.3345.

USD/THB daily chart

Source: TradingView

Indonesian rupiah technical outlook – slightly bearish

The US dollar also weakened against the Indonesian rupiah last week, with USD/IDR closing at its lowest since the middle of August. Prices broke under a bearish Rising Wedge chart formation, opening the door to extending losses since the middle of July. Still, the 100-day SMA is approaching from below, and it could reinstate the dominant upside focus. If not, further losses could open the door to retesting the August low at 14670. Otherwise, a close above the minor 14.6% Fibonacci retracement at 14941 exposes the July high at 15030.

USD/IDR daily chart

Source: TradingView

Philippine peso technical outlook – neutral

The US dollar was little changed against the Philippine peso this past week, but there are rising signs that a turn lower could be in the cards. For one thing, prices left behind a Shooting Star candlestick pattern which subsequently saw downside confirmation. Meanwhile, negative RSI divergence was present as prices set higher highs, but the indicator did not. Further losses would open the door to testing the 50-day SMA. The latter could hold as support, maintaining the broader upside focus. If not, the 55.10 – 55.34 support zone could be the next leg of the journey. Resuming the uptrend entails clearing the 38.2% extension at 57.146 before the midpoint comes in at 57.7785.

USD/PHP daily chart

Source: TradingView

This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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