The US dollar has fallen on Tuesday against the Singapore dollar, testing significant support. This comes after the CPI numbers were weaker than anticipated.
USD/SGD
The US dollar has plunged during trading on Tuesday to break down below the 1.29 level, showing signs of weakness, especially after the CPI number came out, the core CPI at 0.0% instead of the expected 0.2%. This shocked traders, as inflation has been a persistent problem in the United States, and this has worked against the value of the US dollar in general.
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It's worth noting that the 50-day EMA has offered a little bit of support here, and it looks very much like a market that is trying to turn things around from that level. It's also worth noting that the 1.29 level previously had been a somewhat significant resistance barrier.
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The question now is whether or not we can take off to the upside, because if we can, then this is a market that I think goes looking to the 1.30 level. If we break down below the 200-day EMA, then we probably have a market move down to the 1.2750 level, looking at this through the prism of US dollar weakness in general.
The Singapore dollar, of course, is generally a very slow-moving currency most of the time, and I think that probably continues to be the case, but keep in mind you must pay attention to the interest rate markets. If interest rates start to spike in the United States again, that will send this USD/SGD pair higher.
For what it's worth, there's a little bit of an extended bullish flag here. I don't know how much I read into it, but it certainly makes me look for buying opportunities. This remains a bullish market, at least for the time being.
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