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.
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 & 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
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.
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.
Not sure how to enter a trade? Spot reversals (bounces)? Not sure how to spot breakouts?
I invite you to join me in my live market analysis, on daily basis, and improve your trading with us.
Also, you can get one of my strategies free of charge. You will find all the details here
If you have any further questions, don’t hesitate to drop a comment below!
To your success,
Certified Financial Technician