US Dollar, USD/SGD, USD/IDR, USD/MYR, USD/PHP – ASEAN Technical Analysis
- US Dollar extends losses, but key support is holding
- USD/SGD breakout struggles as USD/IDR tumbles
- USD/MYR eyes rectangle, USD/PHP may rise next?
The US Dollar extended losses against its ASEAN counterparts such as the Singapore Dollar, Indonesian Rupiah, Malaysian Ringgit and Philippine Peso. Capital flowed back into emerging markets as Joe Biden gathered enough votes to take the presidency after the US election. This helped cool global trade war fears. Still, my ASEAN-based US Dollar index bounced off critical support recently, denying a key breakout. Given these development, what is the technical picture for USD/SGD, USD/IDR, USD/MYR and USD/PHP?
Singapore Dollar Technical Outlook
The US Dollar is holding at key support against the Singapore Dollar, which is a range between 1.3441 and 1.3459. USD/SGD recently attempted to break under this barrier, but left behind a lower wick. This is as positive RSI divergence showed downside momentum fading. The latter can at times precede a turn higher. A push above the 1.3527 – 1.3543 inflection zone could open the door to testing descending resistance from June. Otherwise, confirming a breakout under support exposes the 2018 inflection zone on the chart below.
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USD/SGD Daily Chart
Indonesian Rupiah Technical Outlook
The Indonesian Rupiah extended gains against the US Dollar, as expected following multiple bearish technical warning signs. USD/IDR dropped through the 14525 – 14563 inflection point, taking out 14342. Now prices are on the cusp of testing the June low at 13935. A drop through this price could open the door to facing the current 2020 low at 13560. Otherwise, a bounce would place the focus on aforementioned support levels which may stand as new resistance. Keep a close on the moving averages on the chart below as well.
USD/IDR Daily Chart
Malaysian Ringgit Technical Outlook
The US Dollar is trading within a rectangle continuation pattern against the Malaysian Ringgit. USD/MYR recently bounced off the floor which could open the door to a retest of the ceiling. However, falling resistance from March could maintain the focus to the downside. A breakout lower could mean a resumption of the downtrend towards the current 2020 low at 4.05. Otherwise, climbing above the rectangle exposes the 4.1965 inflection point.
For updates on ASEAN currencies as they break key technical levels, be sure to follow me on Twitter @ddubrovskyFX.
USD/MYR Daily Chart
Philippine Peso Technical Outlook
The US Dollar is trying to push higher against the Philippine Peso. USD/PHP recently took out near-term falling resistance from October. But in the grand scheme of things, the pair remains in a consolidative state since late August. A meaningful upside breakout would likely entail pushing above 48.823 towards the floor from 2017 which could act as new resistance between 49.26 and 49.37. Positive RSI divergence does warn that downside momentum is fading. Otherwise, resuming losses exposes the October 2016 low at 47.92.
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USD/PHP Daily Chart
–— Written by Daniel Dubrovsky, Currency Analyst for DailyFX.com
To contact Daniel, use the comments section below or @ddubrovskyFX on Twitter