This week we are looking to get USD long as we can see potential strength re-entering the market, we have a reversal trade here on USDSGD. We have been down trending for some time and now we have hit the 1.3400 weekly support level and look to be bouncing from the level.
For the past week we have seen a drop in the value of USDSGD following on from a harmonic pattern. The AB, BC and CD leg have formed the first 3 waves and after the recent reversal, we have seen an over extended move below the wedge to hit a new low last seen in September 2016.
If we see the price reverse from this or a slightly lower price point and then a move ...
simple!
monthly view presents second rejection of the weekly 0.61 fib
daily presents a pullback today
h4 presents entry opportunity whn trendline is applied
OANDA:USDSGD
Example of 1:2 risk/reward at 1st target the 38% from the pattern completion point;
https://www.tradingview.com/chart/EURUSD/PyQ2bJKG-Butterfly-Pattern-Engagement-Rules-Educational/
Safe Trades;
This pair is exhibiting negative divergence on the 240 minute charts from the standard oscillators. With a top also forming with a bearish engulfing spread.. I would read these two as a sensible selling opportunity with a stop above the top of the bearish engulfing candle.
