USDSGD consolidating

Good day all,

Seems like the rally in equities is continuing again, after the STI gapped up and finished the week above 3000. I wish I had more experience with gaps, but as far as I have learnt, gaps should/can/may be filled – which means the STI to drop back lower in the very near-term – then again, it will not be wise to go against the strong bullish sentiment. So, I will stay on the sidelines for a while. For now, let us look at the USDSGD currency pair.

In my last post on USDSGD, I talked about a downward breakout from a symmetrical triangle. Since then, USDSGD halted and decided to consolidate between the 1.24 region and 1.27. The sideways trading presented me with some trading opportunities last week. In the longer run, since I have a bearish target for USDSGD, I have been hoping for USDSGD to break down decisively and head lower. That has not happened, what did happen is that we are in consolidation now, waiting for the next big move. Around 10 days ago, the death cross – 50-day MA going below the 200-day MA – happened. And like what I have been realising for a while now, USDSGD went contrary to the bearish signal and shot up before meeting resistance at 1.27. Of course, in the long-term, this is a reassuring bearish sign.

Image

So far so good in the post-breakout stage of the USDSGD from the symmetrical triangle. Going closer into the chart, I am looking at a short-term set-up.

From the beginning of the month till now, USDSGD formed an upward parallel channel. If USDSGD goes up several pips, I do not mind taking a long position to ride on a possible rally towards 1.2700.

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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