Forex triangles watch

Hey all,

Today I have two currency pairs on my watchlist. Both are showing signs of a triangle pattern in formation.

First, I have the USDSGD pair. I am bearish on the USDSGD in the long-term. In the past, I made some money off this pair by shorting whenever there was a rally. In the month of Septemeber of this year, however, the USDSGD rate shot all the way up to the 1.3000 region. From here on, it became quite volatile and no clear direction, with lows testing 1.2400 and highs going above 1.3000. This may sound like some kind of chart pattern was in the making right? To me, yes, I see some kind of triangular pattern on the chart. This means a big, clear move should be coming up soon. As you can see on the chart, I am building a short position ahead of a breakout because I am confident in longer term downward movement for the USDSGD. I have stops and plan Bs in place in case I am wrong. For now, let’s continue watching the USDSGD rate.

The second currency pair that cuaght my interest is the USDJPY pair. I have not much to say except that a nice and small triangle seems to be in the making. And if it turns out to be a confirmed triangle, right now it looks to be in the mature stage. I have plans to trade this pair, but for now only time will tell if the triangle breaks out in a certain direction.

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.

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One Trackback

  1. By USDSGD cracks « TechnicalAnalysisTalk on January 26, 2012 at 7:00 PM

    […] consolidation for the last several weeks. Seeing a triangle formation on the USDSGD chart – https://technicalanalysistalk.wordpress.com/2011/12/23/forex-triangles-watch/ – I was ready to either long USDSGD if it broke through significant highs, or – like what […]

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