AUDSGD just printed a small W-shaped bottom at strong confluence
This might or might not be a bullish reversal for AUDSGD but it appears to be a high probability setup in my eyes. A number of features are visible:
- There is a W-shaped Double Bottom in the daily chart. In the weekly chart, this action coincides with multiple bullish candles with long tails below.
- There is a confluence of trend lines going back to 2016 that suggests potential support in the weekly chart.
- Back to the daily time frame, there is a bullish expansion in week-week price action last week. This bullish expansion is a signal I was waiting for and explained in this post ‘Simple lesson in forex trend, reversal here with AUDSGD’ on 04 April 2018‘. This bullish expansion in week-week price action terminates previous downtrend.
- Tuesday and Wednesday price action this week could be a higher low suggesting a bullish reversal.
Combining features listed above, this appears to be a high probability reversal pattern. Whether it is a bottom or not does not matter for short term traders however. The follow-the-flow trade now favours a long and green shaded zone in the day chart based on last support and resistance suggests going to a higher trading range. So again whether AUDSGD is reversing or not, just take it one zone (step) at a time.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’.
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