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USDSGD Bearish Rejection Candles – Mean Reversion Likely

usdsgd mean reversion

The USDSGD has been in a monster bullish trend this year, but we’ve started to see some signs of temporary slow down. Going into last week’s close, we see two bearish rejection candles, with those upper tails displaying denials of higher prices right around a weekly resistance level.

To usher us into this week’s trading, a third bearish rejection candle formed, with a much more convincing negative close to the body of the candle – signalling further weakness entering the market around the weekly turning point.

Price is elevated from the mean value, so we could definitely see a correctional move back to the mean here. If price does retrace itself back to the mean, the question is, will the mean value hold? or, will price cut through it and continue to head downwards.

We will have to wait and see what the price action does once it reaches this focal point on the daily chart.

Dale Woods

Dale Woods

The Forex Guy is an educational Forex trading blog run by Dale Woods who has been a passionate retail Forex trader for over 6 years. Dale trades the Forex market exclusively with price action based methodologies, believing price action trading to be one of the powerful approaches used the market today, and really is the core foundation of any good trading system. Dale also strongly believes in keeping charts clean and keeping things simple, logical and uncomplicated. By making trading decisions straight off the raw price action data, you can ‘bypass’ unnecessary variables like exotic indicators, trading robots or magical pivot levels. Dale enforces the idea that there is hardly any edge trading news and economic data releases and much prefers to make trading decisions straight from the candlestick themselves. ‘The Forex Guy’ is dedicated to providing knowledge to serious and passionate traders who want to learn the art of price action trading, positive geared money management and how to psychologically condition themselves to become a professional trader.