Most people don’t really pay too much attention to the Canadian dollar / Singapore dollar pair, but this is to their detriment. After all, the Canadian dollar is highly levered to the commodity markets, especially the crude oil markets. On the other side of the coin, we have the Singapore dollar, which is a currency that acts very much like the Swiss franc.
The first chart is the CAD/SGD Weekly chart. As you can see, the 200 week EMA is currently sitting at the top of the candles that we have been printing. Furthermore, the downtrend line is sitting right here as well. In other words, we are looking at resistance in this very area.
The pair formed a massive bullish candle on Thursday, but was lackluster in Friday trading. What is worth paying attention to is that the 1.05 level is just above, and should attract a certain amount of tension and selling. The market is also at the top of the Bollinger Bands, showing ab overbought scenario. In fact, I believe that if we have a bit more of a “risk off” move, this pair could drop as low as 1.0250 over the next few weeks.