USD Falls Against Asian Currencies

The US Dollar has weakened against Asian currencies this past week as it saw a terrible 2-week performance against the Singapore Dollar since September 2020. This sent USD/SGD to its lowest since early June after breaking under the near-term rising trendline from May. Prices are currently testing the 100-day Simple Moving Average (SMA) after the pair left behind an indecisive pattern. Continuous gains could spell a turning point; however, it seems that the trend is pointing lower. Subsequent support seems to be the 78.6% Fibonacci retracement at 1.3753 before the May low at 1.3660 comes into play.

The US Dollar also fell 1.65% against the Philippine Peso over the past 2 weeks, and it could be poised for more losses. That was the lowest 10-day outcome since May 2020, setting up more losses ahead. This followed the emergence of a Bearish Engulfing candlestick pattern. USD/PHP confirmed a breakout under the 20-day SMA, exposing the 50-day line. Getting to the latter entails clearing immediate support, which is the 23.6% Fibonacci retracement at 55.2627. Uptrend resumption entails a pivot and subsequent breakout above the 2005 high at 56.61.

USD/THB also fell 0.82% this past week, the worst 5-day performance since May. Prices closed under the 20-day SMA after a Shooting Star candlestick pattern emerged. Follow-through is lacking. Further losses could enhance the drop, offering a stronger bearish conviction. Such an outcome would place the focus on the 50-day SMA. Otherwise, uptrend resumption entails a close above 36.949.

The US Dollar was barely holding up against the Indonesian Rupiah this past week, as USD/IDR closed under the 20-day SMA. Still, follow-through appears to be somewhat lacking resistance above appears to be highs from September 2020. A resumption of the uptrend would expose the 138.2% Fibonacci extension at 15039 before 15092 comes into focus.