USDSGD rallies out of descending triangle

Good day all,

While I wait for interesting developments on equities charts, I have a  forex chart for you all today.

In my last post on the Sing Dollar, the USDSGD currency pair was trading at the 1.20s level. I said in the post that the odds of USDSGD sinking to new record lows was high. Looking back, the USDSGD rate held the support from recent lows – which were record lows also – and formed a descending triangle. I am not sure why I did not put up a chart depicting that, but now I wish I did. Fast forward to today, the USDSGD rate is at 1.2328. The USDSGD pair broke out to the upside, before rallying very strongly in the last few days. The rally has been so strong that the target based on the triangle has been hit. With hindsight – which I hope to use less often – this triangle worked out very well. On the second day post-breakout – 7th September – the currency pair retraced a little, or what I have learnt as a pullback. Pullbacks should occur just after breakout. This is an opportunity for traders who want to go long at a better price. After that, the USDSGD rate put in 3 good-sized green candles to where it is now. Perfect triangle pattern.

All analyses, recommendations, discussions and other information herein are published for general information. Readers should not rely solely on the information published on this blog and should seek independent financial advice prior to making any investment decision. The publisher accepts no liability for any loss whatsoever arising from any use of the information published herein.

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: