USDSGD short: Completed corrective move w/ shooting star candle
My previous analysis on USDSGD shows that USDSGD should move up on a new wave cycle. However, recent developments has shown that the wave down should only be part of a bigger move down.
Note this: USDSGD is a managed float currency that is managed by the MAS. However, this only means that MAS will intervene if the currency is nearing the bands that MAS set. This band is not known but can be modeled. Recently MAS did mention that it will widen the bands, thus allowing more room for this pair to move.
Given that USD has over-extended itself (in strength) in the G7s, the risk on the trade now naturally favors weakening of USD. Note that when the tide rises up or down, no matter whether you are a small boat or a big ship, you rise and fall together with the tide as long as you are in the waters.
Here's the weekly shooting star formation:
Note this: USDSGD is a managed float currency that is managed by the MAS. However, this only means that MAS will intervene if the currency is nearing the bands that MAS set. This band is not known but can be modeled. Recently MAS did mention that it will widen the bands, thus allowing more room for this pair to move.
Given that USD has over-extended itself (in strength) in the G7s, the risk on the trade now naturally favors weakening of USD. Note that when the tide rises up or down, no matter whether you are a small boat or a big ship, you rise and fall together with the tide as long as you are in the waters.
Here's the weekly shooting star formation:
Trade closed: stop reached:
I was wrong. Be careful though. The volatility here doesn't look nice.