The Aussie is trading in three channels simultaneously against the Singapore Dollar. The senior channel is more clearly apparent on the daily chart as it was formed mid-2015. Meanwhile, the medium-term descending channel has guided the pair towards the bottom line of the long-term channel during the past two months.
The Aussie was trading in a wave down since October 19; however, sluggish Australian CPI data released early this morning resulted in a 74-pip plunge in just two hours. As a result, the rate is located at the bottom boundary of the most junior channel near the 1.0510 mark.
This massive fall has pushed technical indicators in the strongly bearish territory. Thus, the most likely scenario favours the rate rebounding from this are and approaching a combined resistance of the 55-, 100– and 200-hour SMAs and the weekly PP near the 1.0630 mark. Given that the rate has still not reached the bottom boundary of the long-term channel, bears might prevail in the following weeks.