USD/SGD – A corrective wave 4 is underway?
A larger corrective wave from 1.1990 (Jul’11 low) may be unfolding in a multi-month flat wave within a range of 1.3200 and 1.2000. The setback from 1.2970 (June high) could be a wave (C) which could retest the 1.1990 support. A reversal above 1.2560 would refocus on the 1.2970/1.3200 resistance initially. A close below 1.2000 however extends the bear run deeper.
The pair is attempting a wave 4 corrective recovery from 1.2145 with potential bullish divergences in daily RSI. The recovery is shallow so far and the corrective wave is likely to continue while it holds above 1.2145. A break above 1.2240 could extend the recovery toward 1.2300/1.2340 ahead of tough resistance at 1.2400 (watch the daily trend channel). A move below 1.2145 however would aim for 1.2100 ahead of strong support around 1.2000.