The Australian Dollar is trading in an ascending channel against its Singaporean counterpart. Currently, the given exchange rate has entered a consolidation period, fluctuating between 1.0919 and 1.0758. As apparent on the chart, the last wave up failed to reach the upper boundary of the channel, suggesting that some change in trader sentiment may be due. Thus, it is expected that the Aussie does not return in the 1.1000/1.1100 area, but breaches the above channel up to the downside in the upcoming trading days. Nevertheless, this line is supported by the 55-, 100– and 200-hour SMAs circa 1.0820 that may hinder or even halt the pair from trading lower. A penetration of this area may add fuel to the increasingly bearish sentiment.
Following a three-month period of no distinct direction, the Aussie started to depreciate against the Singaporean Dollar mid-September.
During the past two trading sessions, the rate has hindered near the 1.0590 mark—a level that intersects with the 61.8% Fibonacci expansion line and the lower boundary of a falling wedge.
The pair is currently stranded between the weekly and monthly S1s from below and the 55-hour SMA, the weekly PP and the 38.2% Fibo extension from above circa 1.0553 and 1.0635, respectively. This demonstrates that even though the overall sentiment is largely bullish, there might still be some slight depreciation down to the former (which might actually be a movement sideways rather than a fall).
A falling wedge is a bullish pattern; thus, a breakout should occur to the upside. This might happen near the aforementioned resistance cluster. However, it is yet unclear how long this area could hold prior to being breached.