Recap of bearish view on SGDCNH on January
First of all, I published a bearish view on SGDCNH on Jan. end. The pair rebounded from 4.84 to hit my daily supply zone around 4.89, followed by a series of bearish candles.
Now the price is around 4.835ish. It's coming towards the previous low and very likely to break this level.
It's a momentum play and my idea was based on the long wick candle on weekly. A weak SGD may indicate a few things below:
1. Inflation: Unlike U.S. and China, central bank in SG targets exchange rate. the little red dot replies on stuff imported from other countries, e.g. food. a stronger SGD helps to control inflation issues. local people might feel stressed for the potential rising living costs.
2. Investment: A weak SGD helps to spur the economic growth. Foreign investors may find good deals, e.g. properties.
Singapore is an open economy in the world, and it suffered a lot during the Covid-19 crisis. Government spent a lot of 'savings' on its books and launched a series of schemes and packages to support local companies and people. I do hope things become better. When border opens again and international travel resumes, the little red dot will be back to normal again!
Now the price is around 4.835ish. It's coming towards the previous low and very likely to break this level.
It's a momentum play and my idea was based on the long wick candle on weekly. A weak SGD may indicate a few things below:
1. Inflation: Unlike U.S. and China, central bank in SG targets exchange rate. the little red dot replies on stuff imported from other countries, e.g. food. a stronger SGD helps to control inflation issues. local people might feel stressed for the potential rising living costs.
2. Investment: A weak SGD helps to spur the economic growth. Foreign investors may find good deals, e.g. properties.
Singapore is an open economy in the world, and it suffered a lot during the Covid-19 crisis. Government spent a lot of 'savings' on its books and launched a series of schemes and packages to support local companies and people. I do hope things become better. When border opens again and international travel resumes, the little red dot will be back to normal again!
Comment:
okie. Now previous swing low was violated. With a lower low created, price is expected to go down.
plan your trade and trade your plan
