The head and shoulders on USD

Seems like my worst fear is being realized, USD is heading down against SGD!


Fig 1 USD Vs SGD Weekly Chart

Looking at the chart, I can identify a head and shoulder formation between November 2009 to March 2010. It has recently broken the neckline and heading down. The objective of USD is SGD1.358.

However, I think it is not a straight forward thing. It should be rebounding either this or next week to head back to the neck line before completing its objective. For the time being, there is a resistance at SGd1.3782, support at SGD1.3466.

On a side note, I am aware of the report from ST that the Garment intentionally strengthen SGD? I really wonder for what purpose they want to do so. Making Singapore more expensive is not good especially when Singapore is a net export country. the only good out come is that things become much cheaper for Singaporeans since Singapore import most of its stuffs here. The only thing I can think of is "ELECTION".

The way I see it, the ruling party is already expecting a lot of voters moving away from them. That is why they already started their propagenda machines, recent news have been putting more limelight onto the opposition in a negative aspect. Barriers of entry have also been set up by increasing the deposit. In addition, the GRCs are now getting smaller so to minimize damages in case of losses.

But really, for once I feel like seeing the ruling party here losing their deposit. I just don't know if Singaporeans have the guts to do it. If I want to compare, Malaysians are more patriotic than Singaporeans, it is less likely that Singaporeans dare let go of the little benefits given by the present government in exchange for the good of the country.