STI Still In Bullish Mode

Singapore’s Straits Times Index has been flirting with its 50 day moving average. The index has moved below the 50 day moving average on several occasions only to stage a rebound to close above it. The 50 day moving average is now at 2668 and this will be a critical support level going forward.

The phase chart is now back in “Bullish” phase although it went into “Warning” phase in the first 2 weeks of November.

The index is also showing difficulty in moving above 2740 level. Break above 2740 will mean a target objective of 2900. Let’s see if the bulls can keep the rally going.

SGD Getting Stronger

US dollar is continuing its bearish trend with respect to the SG dollar. The US dollar index, which tracks the greenback against the currencies of six major US trading partners, has fallen 15% from its peak this year.

The phase chart of US dollar and SG dollar currency pair is clearly on a downtrend. The phase chart has stayed in “Bearish” mode for most of 2009 till date and there is no sign that this trend will reverse any time soon.

One of the main concerns is whether US dollar will lose its status as the main reserve currency. If this happens, it will accelerate the fall of USD.