SUGARUSD is currently consolidating at the peak of its uptrend, with clear resistance and support levels at 0.12506 and 0.12110 respectively. However, the formation of a Double Top pattern, along with a bearish Head and Shoulders pattern against the backdrop of the 2nd leg of the Double Top, suggest a strong possibility for a bearish reversal.
On the fundamentals, recent strengthening of the USD has seen commodities falling across the board. Possible bullish USD performance in the weeks ahead may see SUGARUSD breaking below support for a downtrend.
Trade: Enter when price breaks 1 ATR below support, at 1.11946. Set stop loss 1 ATR above support, at 1.12274.
On the fundamentals, recent strengthening of the USD has seen commodities falling across the board. Possible bullish USD performance in the weeks ahead may see SUGARUSD breaking below support for a downtrend.
Trade: Enter when price breaks 1 ATR below support, at 1.11946. Set stop loss 1 ATR above support, at 1.12274.