USDSGD pair meeting major resistance-support zone
Following rally in January, USDSGD has run into a resistance-support zone that has been in play as early as November 2011. This is a major zone considering that price action has test this region at least 4 times in that period. If price gains above this level, there is an opportunity to trade a bullish reversal.
USDSGD stands to make a bullish reversal when price crosses this resistance-support zone
Long term consolidation, no reversal pattern
Still, bulls who are aiming for a bullish reversal may be looking at a long shot. After all, when we look at the big picture for a weekly chart, there is no hint of bullish reversal chart pattern emerging. Clearly price action in 2012 was consolidating the 2011 range. In fact several trendline studies indicate that overall trend may be downwards.
USDSGD is consolidating sideways. Trendline studies still indicate downtrend and there is no bullish reversal pattern
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Soh Tiong Hum is Director of TerraSeeds Market Technician Pte Ltd. TerraSeeds is a trading educator in Singapore since 2005.
Soh Tiong Hum is a member and regular speaker at Technical Analysts Society Singapore events and has a bi-monthly lunch time event at IG Singapore on forex and stock markets. He is an avid blogger on technical analysis topics; his Twitter account @sohtionghum
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