Looking at the USDSGD pair, now trading firmly above the 61.8% retracement of the move from the September highs, we see the flight to quality bid in the market on European fears and subsequently lower equities has propelled the USD against Asian risk pairs. On the chart below we see the prospects could be improving for the pair toward the September highs as we see the 100day mavg about to converge and break above the 200day. However, the technical circumstances will all fall by the waist side as news out of Europe will continue to determine the direction of risk trades.
