Weekly outlook for Singapore Dollar – 29th November 2018

USDSGD Technical Analysis for binary options

Introduction

This week, we’ll be looking at how the previous week’s gain of the Singapore dollar is gradually being erased by a couple of technical and fundamental events, read on and enjoy the ride.

Nokia and StarHub: Live trial of 5G in Singapore

Using the Nokia 5G cells and core network technology at StarHub HQ, the duo started a premier 5G (3.5GHz) band New Radio.

The use of video analytics to increase performance and lessen generation errors as well as a manufacturing environment and virtual reality sports viewing are among the demos covered in the test.

Singapore 30 [SG30SGD]

USDSGD Technicala anlalysis for binary options

Starting from November 19 with price triggering a breakdown of bullish accumulation in combination with a bearish accumulation pattern in the next our, price entered into a series of consecutive bearish declining bars.

On the next day, 20th of November, an opposite breakout of bearish accumulation pattern was triggered, setting price up for a bullish trend. Following a retracement on November 22nd, another breakout of bearish accumulation was triggered signalling an end to the bullish trend retracement. Four hours after the breakout, the time series chart was set up for a bullish accumulation pattern, signalling consecutive bullish closing bars.

The U.S Dollar Currency Index [DXY]

This week, unlike our last post where we took a 2hourly chart overview of the USD index to gauge the strength of the US Dollar, we’ll be analysing the above everyday chart. Here we identified a bearish regular divergence pattern on November 13, and an opposite bullish hidden divergence setup in combination with a breakout of bearish accumulation.

The bullish trend triggered by the mentioned setup is an indication of a strong U.S dollar.

Technical

USDSGD: Weekly Chart

The weekly chart of the USDSGD pair triggers a confluence of events that comprise of a bearish regular divergence in combination with a bearish accumulation pattern, means an increase in strength of Singapore dollar. This bearish pattern built resistance levels at 1.38709 and 1.38221. For as long as price does not close above either of these resistance levels, we are still focused on the present bearish trend trigger.

USDSGD: Daily Timeframe

Although the weekly chart is set up for a bearish trend, the daily chart will highlight midterm upward and downward swings. This time-frame furnishes a clearer weekly sketch and helps sidestep ordering at the bottom of a weekly chart correction.

The breakout of bearish accumulation on November 20 in combination with a bullish hidden divergence and a bullish accumulation pattern on the 24th of November sets the foreign exchange rate of the USD SGD for a bullish trend.

Comparing this to the USD INDEX chart analyzed earlier, we observe a correlation between both charts on the same time frame as they both fire up bullish hidden divergence, which reveals a dominant USD.

USDSGD: 2-Hour Chart

Most suitable for binary options trading is the 2-hour chart as most traders and brokers often offer much lower time frame chart for put and call execution. A bullish hidden divergence pattern formed on the 20th formed an engulfing outside bar, igniting price into a sequence of consecutive bullish closing bars.

The important price reversal points on the above chart towards bullish rallies are the breakout of bearish accumulation patterns on November 22 and 26.

Conclusion

Considering both the technical and fundamental analysis of the USDSGD foreign exchange, we come to the conclusion that moving into the current week, the Singapore dollar shows further weakness against the United States dollar. We project a first take profit from the daily chart perspective at 1.38221 and a second take profit target of 0.86%  at 1.38709 a 2.44 risk to reward ratio, which is also the weekly charts resistance levels.

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DISCLAIMER

James Martin

I'm based in London ( England, UK )
I've been a professional trader for over 5 years.
Currently I work as forex analyst for different investment companies.

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