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.
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.
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.