The USD retreats?

When I first learned technical analysis, I was told by my teacher that the upper time frame governs the lower time frame. That is the indication from a monthly chart is more significant than the weekly, subsequently the daily chart. However, some times the conflicting signals makes it confusing for me to determine whether a chart is heading north or south.

USD vs SGD chart for instance is giving conflicting account. The monthly chart indicates a bear tendency, that is USD is going to move lower against SGD. The weekly chart on the other hand has indicators turning positive. The pattern from the weekly chart further confuses me with 2 possible formations, a rectangle (target 13962) or double bottom ( a small one with target 15049 ).

One thing about charts of higher time frame is that it omits a lot of details and somehow provide a less nisy pictures. At the same time, certain minor details are being erased. Thus it is still important to look back at lower time frame to see if anything has been missed.



Fig 1 USD vs SGD Daily chart

While I glanced through the daily chart in Fig 1. I noted a up-ward wedge formation with downward objective of 14187). Further to that, another possible formation of a swing move would propagate the Dollar to about 14152. Thus far, I have not seen any up-ward indication, which probably due to my perceiver personality (problem with details). So for the time being, the daily chart is in-line with the monthly chart.

The indicators on the daily charts are in the process of moving lower, although with indications of reversing. They are both (RSI and Stochastic) mid-way heading south. So there is a tendency that the downtrend would be continuing with minor up-ward trend.