It is definitely the pattern I find hardest to resist: when we see a long wick forming off support or resistance, I'm take an extra close look. And in the case of USDSGD
, this long wick off resistance is coinciding with the 200 EMA
, while we have pattern of lower highs in the background. All of this suggests the market may be ready to head back down. I'm short at 2532 with my stop at 2568 and my target profit at 2361. I'm risking 36 pips to gain 171, which gives me a reward/risk of 4.75.