USD/SGD - High-Probability Bullish Continuation
USD/SGD Confluence:
1. 50/60 - 200/250 EMA Crossover in January 2015 indicated a major transition in market sentiment.
2. Measuring the entire symmetrical triangle breakout leg from Summer 2014 to the highs at 1.39 which marked the end of the Quarter 1 of 2015, we can see the .5 - .618 Fibonacci retracement lies at 1.32- 1.30
3. 1.32 was the peak of the symmetrical triangle providing significant resistance. Look for this area to now act as a new major support level.
4. A re-test of the 1.32-1.30 zone would also coincide with a retest of the 50/60 EMA's as new dynamic support for the first time since 2002.
5. The ten year weekly trend-line was broken during the symmetrical triangle breakout, this eliminates any chance of this trend-line providing bearish resistance.
6. As the USDOLLAR Index starts a bearish leg down following the weekly double-top pattern, this provides us additional confluence for USD/SGD continuing its bearish leg down to 1.32.
7. Any price action signal that occurs in the high-probability zone of 1.32-1.30 will be the catalyst for me to take a long trade in this market targeting the highs at 1.39
1. 50/60 - 200/250 EMA Crossover in January 2015 indicated a major transition in market sentiment.
2. Measuring the entire symmetrical triangle breakout leg from Summer 2014 to the highs at 1.39 which marked the end of the Quarter 1 of 2015, we can see the .5 - .618 Fibonacci retracement lies at 1.32- 1.30
3. 1.32 was the peak of the symmetrical triangle providing significant resistance. Look for this area to now act as a new major support level.
4. A re-test of the 1.32-1.30 zone would also coincide with a retest of the 50/60 EMA's as new dynamic support for the first time since 2002.
5. The ten year weekly trend-line was broken during the symmetrical triangle breakout, this eliminates any chance of this trend-line providing bearish resistance.
6. As the USDOLLAR Index starts a bearish leg down following the weekly double-top pattern, this provides us additional confluence for USD/SGD continuing its bearish leg down to 1.32.
7. Any price action signal that occurs in the high-probability zone of 1.32-1.30 will be the catalyst for me to take a long trade in this market targeting the highs at 1.39