The dollar has been slumping, and the major peers have moved accordingly. However, the minor pairs could potentially offer profitable opportunities that tend to arrive fashionably late.
The drop in the dollar could offer a shorting opportunity against the Singaporean dollar. This pair does not has a strong daily volatility, but it offers a carry trade opportunity to play the short dollar trend for those less inclined to trade more volatile major pairs. Furthermore, it allows exposure into the Asian currencies, which have done well against the dollar.
Currently, the USDSGD is trading on support at 1.2494 after breaking through an ascending trend line of the recent low. Look for the pair to trade lower to 1.242, with a secondary target of 1.2350 if the dollar weakness continues.
A plethora of exponential moving averages are above the USDSGD acting as resistance, and the 20 and 50 EMA are looking like they will converge into a bearish crossover. Just above lies the 200 EMA.