AUD Vs SGD

I recall the first time I encounter AUD is some time in 1980s. My father deposited some money in something that is called Asian Currency Unit (ACU). At that time, AUD was very strong against SGD then, I remember it was AUD 1 to SGD1.50. Things changed since then and 20 plus years in a long way. We have seen ups and downs between the AUD and SGD over the years, and you can't make it clearer than the charts.



Fig 1 AUD vs SGD Weekly chart

One look at the chart and one would notice a double top formation. The formation already completed and AUD when down, crossed the neck line and now hovering with neckline as support.

The interesting thing about this is that it broke upwards and refused to retreat. In fact it is making attempt to create a penant formation so that AUD could gain new high. This would in efect cause the earlier Double Top formation obsolete.

At present moment, unfortunately, that it is fast losing its momentum. Both RSI and Stochastics are on decline, meaning that AUD is weakening. Considering a swing move, the measurement indicates AUD1 to SGD0.78. Its main support is still the neckline approximate at 113.8. Resistance 118.18.

My take is that there are more chance of down than up for the time being. The set up simply would not allow AUD to be up.