The Singapore dollar’s strength looks set to fade after it lost momentum following its advance to the strongest in almost two years.

The U.S. dollar appears poised to rally against the Singapore dollar toward its 200-day moving average, after the pair formed a potential bullish double bottom pattern in February. The currency pair started the year falling to its lowest level since April 2018, as the Singapore dollar rode the wave of risk appetite that was fueled by coronavirus vaccine optimism. However, support for the U.S. dollar around its January low against the Singapore currency has continued to hold despite being retested.