USDSGD cracks

Good day all,

The US Dollar has finally cracked downwards after sideways 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 you would have seen in the link above, I was building a short position slowly, waiting for a crack towards the downwards. Thankfully, the USDSGD fell through support lines and is now trading at the 1.25 region. A straightforward projection will be to take the height of the triangle and project it downwards from the breakout. Take a look at the chart below. What will this simple projection give us? 1.22 region. In other words, this triangle breakout should put the USDSGD rate back down near historic lows. Am I going to keep my short all the way till the USDSGD touches 1.22? No, I will take profit and continue monitoring and executing short-term trades. If there is anything I have learnt in the forex market, it is that rates are very volatile and even more should stops be placed with care. Expect the unexpected! The money is on the table, so I will take it while I can!

Anyways, this site is technical analysis – oriented and not about my trades. So that is about it, let us watch and see if USDSGD returns back down to 1.20.

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: