Technical Analysis – USDSGD Short Term Forecast

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Technical Analysis - USDSGD Short Term Forecast

Hi Traders! USDSGD short term forecast and technical analysis is here. As we do in every technical post we are going to perform the multi-time frame analysis on this pair in order to find the possible trading opportunities. We do our analysis on the MetaTrader4 platform (MT4). Some very interesting and useful tips and hacks about the MT4 platform could be found here. This pair definitely looks interesting at the moment so as usual, we will start our analysis from the highest timeframe which would be the H4 chart here.

USDSGD H4(4 Hours) Chart Analysis – Bearish Trend Pattern, Key Resistance Zone, Parabolic Sar, ADX Indicator

On the H4 chart, the price which was moving lower had created a bearish trend pattern. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. The correction that we were looking for happened in the form of two waves, we also had a key resistance zone that has formed based on the 61.8% fibonacci expansion level of the first wave at 1.39802 and the 38.2% fibonacci retracement level of the bearish trend pattern at 1.39829. The price respected this key resistance zone and is currently moving lower, also based on the Parabolic Sar the dots are above the price which we may consider as evidence of bearish pressure. In addition to this, the ADX indicator gave bearish signal at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25, we may consider this as another evidence of bearish pressure. We may now move down to lower timeframe and see if we can find evidence supporting this bearish view.

Technical Analysis - USDSGD Short Term Forecast

 

 

USDSGD H1(1 Hour) Chart Analysis – Bearish Trend Pattern

On the H1 chart, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. The invalidation level for this bearish view would be the 61.8% fibonacci retracement level at 1.39454 of this bearish trend pattern, if the price moves higher in one straight leg, breaks and holds above this level, then this bearish view will be invalidated. Until this invalidation level holds, my view remains bearish here and I expect further continuation lower.

Technical Analysis - USDSGD Short Term Forecast

 

Technical Analysis & Forecast Summary

USDSGD H4(4 Hours) Chart Analysis

  • Bearish Trend Pattern, Key Resistance Zone, Parabolic Sar, ADX Indicator

USDSGD H1(1 Hour) Chart Analysis

  • Bearish Trend Pattern

Trading Tips

It is always recommended to look for confirmations before you jump into any trade. If you are not sure about how to trade this sell setup then you can use any setup and strategy that you have in your arsenal to look for bearish moves and join this sell trade.

Also don’t forget to protect your sell trade using a stop loss and make sure to set a target and keep a proper risk reward ratio.

You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.

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To your success,

Vladimir Ribakov
Certified Financial Technician

 

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