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USDSGD breakout expected as pair moves towards apex of consolidation

Traders expect USDSGD breakout; down is higher probability move

USDSGD prints a 4-year symmetrical triangle. As price nears the apex, a price breakout becomes imminent. The bigger the pattern (4-years already), the bigger the subsequent move.

USDSGD consolidation

This 4-year consolidation triangle is likely a continuation pattern


When will USDSGD break out?

Chart pattern studies call for price to breakout at two thirds of the triangle from the beginning of the pattern till the apex. From the chart, USDSGD is there or nearly there. There is no actual science that predicts exactly where but price has to be near to either one of the trend lines that define the top or bottom of the triangle.


Where will USDSGD break out?

With symmetrical triangles, traders see a high probability continuation pattern. The Singapore Dollar has already a decade long trend of appreciating against the USD. In line with this trend and in the absence of any bullish reversal pattern, price is likely to break downwards with further gains by the Singapore Dollar. From the chart below, we can see that the currency pair tested the overhead trend line twice. This 1-2 test by bulls failed to penetrate resistance and with their surrender, bears take over to bring the pair lower.

USDSGD trend down

USDSGD tests resistance; resistance holds, price turns down

Very soon the turn to test support will come. With that test comes a concurrent chance for USDSGD to do a breakout. Watch out below.

Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’.

“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.

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