After more than a decade of basing, the SGD/USD is finally punching through a key breakout level—the 61.8% retracement of its 2011–2020 decline.
This isn’t just another FX pair catching a bid. Singapore is one of the most critical currencies in global trade. The city-state controls the Strait of Malacca—a vital artery for global shipping.
When the Singapore Dollar is strong, it's usually saying something about global trade flows, risk appetite, and Asia's relative strength on a global stage.
Singapore, plainly put, is the financial hub of Southeast Asia.
So it makes sense to see it break out as we continue to see rotation into EM, and Asia in particular– as well as weakness in the US Dollar.
Zooming out, this is a textbook rounding bottom. The long base. The range-bound price action. The upside resolution. This is classic trend reversal stuff.
And it’s not just the currency flashing a regime change.
Here are Singaporean equities overlaid with SGD:
EWS, the Singapore country ETF, is pressing against a massive level of interest around 26. This level represents the complex neckline of a base that dates back over a decade.
A breakout above that level would only confirm the strength we’re seeing in the FX market.
And that's how we’re viewing this move in Singapore. It's not just an isolated currency, it's a key confirmatory factor for the strength we’re seeing in Asia writ large.
This is the moment you wait for.
“The bigger the base, the higher in space.”
Here’s How We’re Trading It:
For broad exposure, we’re watching MSCI Singapore ETF $EWS:
If EWS can sustain a breakout above 26, we’re long with a target of 38.
We’ve already covered Singaporean leaders like $GRAB and $SE. But for those looking to lean into the relative strength of the currency even more, we have a stock with a beautiful, clean base that is on breakout watch right now:
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