USDSGD has tested key support three times in November, in which price quickly rebound after reaching this level. This is significant as quick rebounds indicate bullish sentiment, as buyers continue buy at dips. This is further evident by the fact that price has been trading in a channel trend since June of this year. Going forward, you must look closely to the performance of Chinese & emerging markets stocks for potential correlation (Since the pair is USDSGD the correlation will be inverse to stock price). Lastly, we cannot forget about the ongoing trade war, in which bad news coming out of China will also be bearish of the Singaporean dollar.
Trade Step-ups:
Bullish Reversal: Price rejects break from long-term bullish trend. Price swings to the topside of the channel. In addition, it is entirely possible for price to break current support level to test the final support before price reverses. Profit levels to look for are 1.3840 & 1.3870.
Bearish Breakout: Price breaks current support level and the final support level. Expect more declines if price consolidates below 1.3680.
Trade Step-ups:
Bullish Reversal: Price rejects break from long-term bullish trend. Price swings to the topside of the channel. In addition, it is entirely possible for price to break current support level to test the final support before price reverses. Profit levels to look for are 1.3840 & 1.3870.
Bearish Breakout: Price breaks current support level and the final support level. Expect more declines if price consolidates below 1.3680.