Home *Trade Update* USDSGD: Price Action Buy Signals @ Major

*Trade Update* USDSGD: Price Action Buy Signals @ Major

usdsgd buy signals

Last week the fed ‘played their hand’, and decided  not  to raise interest rates in the US. It  was this year’s highly anticipated news that forced the market to remain in  consolidation holding patterns until the decision was announced, so  investors knew where they stood.

Initially the USD weakened off the back off the release, but quickly started to show signs of strength again. On the USDSGD daily chart, we can see how there was a bearish correction into a major support level as the USD lost some ground.

Now the bulls are coming back in hard, and are defending the support level aggressively. Notice how price sold off into the level twice, but the moves lower were rejected by the market – demonstrating lower prices are not favored “hint hint”.

This denial of bearish price moves has printed  two bullish rejection candles, which are strong looking price action buy signals. The closing price of the candles are higher than the open too, which is something I like to see – it gives the setup that extra bullish shine.

We will most likely see a rally out of this setup, as it aligns with the overall dominant uptrend in place here. Be careful of any breakouts that occur during the Asia session. If they do occur, make sure they don’t turn into a fake out, which would be a very bearish signal.


Trade Update

usdsgd take profit

We recently covered a setup on the USDSGD market – a nice set of bullish price action signals that formed at a major support level.

It was anticipated there would be a nice move upwards out of this setup, and the market didn’t disappoint. We’ve only got bullish thick  body bullish closing daily candles  as price moved rapidly upwards last week.

We’ve only seen the first bearish candle now as the market slammed into resistance. This would be a good area to take profit on the trade, unless however you want to hold longer term, and see if the market will break through the resistance level, and push into new highs.

The only concern is a bearish rejection candle which has formed off the level – which suggests a possible sell-off. There has not been any bearish follow through from the setup yet, which means the bearish presence here might be  just a small reaction to price tapping into the resistance level.

If price breaks the low of the bearish rejection candle, we could see a move lower – but for now price is looking very buoyant. The London session will most likely reveal more clues to where this market wants to go.

But for now, those who took profit on the bullish trade, congrats and best of luck to you all for this week’s trading.

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.