rounded corner
rounded corner
top border

​ Singapore Dollar (SGD) Plunges as Central Bank Signals Easing

Bookmark and Share

Singapore Dollar (SGD) Plunges as Central Bank Signals Easing

Singapore Dollar SGD tumbled last week after Monetary Authority of Singapore (MAS) suggests that Singapore Dollar has room to depreciate. The statement came after the coronavirus infection spread to the territory and the central bank predicts it will hit growth. This comes after the economy shows signs of recovering from last years weakest growth in a decade. Unlike other central banks, MAS manages policy through exchange rate bands. This band is not disclosed and MAS will let SGD to rise or fall within the closely-guarded bands.

In their statement, MAS indicated theres sufficient room within the policy band to accomodate an easing in line with the weakening of economic conditions. It dropped as much as 0.9% last week to $1.382 against the U.S Dollar after the announcement. The currency will likely remain under pressure as markets price in easing.

USD/SGD Daily Elliott Wave Sequence

Singapore Dollar (SGD) Plunges as Central Banks Signals Easing

Daily Elliott Wave chart above shows the pair is close to breaking above Sept 3, 2019 high (1.394). A break above that level will create a bullish sequence from January 26, 2018 low and confirm that the next leg higher within wave III / C to have started. Wave ((1)) rally from January 2, 2020 low (1.344) also looks impulsive and later wave ((2)) pullback should continue to find support in 3, 7, or 11 swing against 1.344 for more upside. We dont like selling the pair and favor further upside as far as pivot at 1.344 low stays intact.

USD/SGD 1 hour Elliott Wave Outlook

Short term 1 hour chart of USDSGD above suggests pair has scope to extend 1 more leg higher before ending 5 waves up from Jan 3, 2020 low. Wave (4) pullback is currently in progress in 3, 7, or 11 swing before pair resumes higher. As far as pivot at 1.347 low stays intact, expect pair to extend higher 1 more time. If the pair does extend higher in wave (5) and breaks above September 3, 2019 high, then the bullish sequence from January 2018 low will be confirmed.

For more update on USDSGD or other forex, indices, and commodities, feel free to try our service > 14 days FREE Trial.

Recent articles from this author

About the author  (by EME PROCESSING AND CONSULTING LLC) was founded in 2005 by Eric Morera. Since inception our company has provided tailored Financial Market Services to thousands of clients.

ElliottWave-Forecast has built a reputation on accurate technical analysis and a winning attitude. By successfully incorporating the Elliott Wave Theory with Market Correlation, cycles, proprietary pivot system, we provide precise forecasts with up-to-date analysis for 42 instruments including FX majors, Gold, Silver, Copper, Oil, TNX and major Equity Indices. Our clients also have immediate access to our proprietary actionable trade setups, market overview, 1 Hour, 4 Hour, Daily & weekly wave counts. Weekend webinar, Live Screen Sharing Sessions, Daily Technical Videos, Educational Resources, and 24 Hour chat room where they are provided live updates and given answers to their questions.

Published by Barchart
Home  •  Charts & Quotes  •  Commentary  •  Authors  •  Education  •  Broker Search  •  Trading Tools  •  Help  •  Contact  •  Advertise With Us  •  Commodities
Markets: Currencies  •   Energies  •   Financials  •   Grains  •   Indices  •   Meats  •   Metals  •   Softs

The information contained on is believed to be accurate but is not guaranteed. Market data is furnished on an exchange delayed basis by Data transmission or omissions shall not be made the basis for any claim, demand or cause for action. No information on the site, nor any opinion expressed, constitutes a solicitation of the purchase or sale of any futures or options contracts. is not a broker, nor does it have an affiliation with any broker.

Copyright ©2005-2020, a product. All rights reserved.

About Us  •   Sitemap  •   Terms of Use  •   Privacy Policy