The USDSGD has broken out of the possibility of a wedge formation. Sellers to the bottom of the wedge who had held on to their shorts should look to taking profit, and beware of the potential of an ABCD pattern.
Interested buyers can look for a long if the price bounces at the D portion of the pattern. But wait for confirmation, for the pattern could be invalidate like before.
Fundamentally, the market attributed the USD weaknesses to an increase in risk-on appetite from positive sentiments towards the US-China trade war. Less-than-expected good news, or bad news on that front could drive USD strength back to support our technical analysis.
Interested buyers can look for a long if the price bounces at the D portion of the pattern. But wait for confirmation, for the pattern could be invalidate like before.
Fundamentally, the market attributed the USD weaknesses to an increase in risk-on appetite from positive sentiments towards the US-China trade war. Less-than-expected good news, or bad news on that front could drive USD strength back to support our technical analysis.
Comment:
At this moment, I would wait for a new pattern to form before deciding whether to go long or short.
Although the USDSGD has bounce at D, buyers should remain careful as USDSGD remain in a downward channel. A replay of the previous down-move in this channel could potentially happen again.