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Jan 14

USD/SGD Overview

  • If we take a look in weekly chart of USDSGD pair, we can see an Elliot wave is forming. Leg 1 is completed, leg 2 retraced back to near 38.2 fib level and now moving upwards. There is a strong possibility to create the leg 3, which may go at least 127.2 fib level. Therefore, from longer time frame I am biased towards north.

USDSGDW1

  • In daily chart, we can see that price is in upper side of 200 EMA. Moreover, 100 EMA and 50 EMA suggesting a strong upper trend. Currently, price is bouncing near 21 EMA. We can see a support zone as indicated in the figure. I’ve also drawn a upper trend line. If price come back near the support zone (near the gray box). It will be confluence by upper trend line and also by the dynamic support zone between 50 & 100 EMA. I will look for price action buy signal near the orange box that I drew in the figure.

USDSGDDMA

  • My 1st profit target will be around 1.2735 level. 2nd will be around 1.2858. If trade goes in my favor I’ll keep one position open till 1.3050 level. My stop loss will be below the orange box which is also supported by 50 Fib level. We can get at least 1:3 risk reward ration for 1st profit target.

USDSGDD1Please feel free to add your views.

2 comments

  1. Trader

    USDSGDswap

  2. Chief Trader

    Looks like an inverted head and shoulder pattern in daily chart. The neck line is the S/R zone as indicated. The price has not tested the neckline since broken, and expected to do so over coming days. The S/R zone appears solid and worth taking a trade with a bullish 4H candlestick confirmation.
    Execution plan: Set a price alert for S/R zone price. After receiving alert, watch for price action (PA) on 4H, should a bounce occur i.e. a bullish candlestick appear, go long with two trades of 25K each with sl and tp levels indicated in the chart.

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