The USDSGD is winding up after breaking through a key daily resistance flip level. This resistance flip level was convincingly broken through when a bearish engulfing bar (BEEB) broke and closed through with price closing well lower and close to the session lows. After forming this BEEB price has stalled and has since formed an inside bar (IB) with price unable to move either higher or lower.
The reason price is is caught in this winding up is below the BEEB is a support level, however the longer the winding up goes on, normally the more powerful the break out is when it occurs. The trend and recent moment on this pair has been lower and if price can continue with this momentum and break out and make a move through this support level the next key support comes in a fair way below around 1.2270. Break out traders should be watching all possible price action clues on this pair. Trend traders could watch for price to make a move back higher and back into the new resistance area that the high of the BEEB rejected. This old support area could act as a new resistance for trend traders to target new trend trades on both daily and intraday time frames should price move back higher and fire off a price action signal.
USDSGD Daily Chart
Special Note: I have just released a new educational video that is a follow on to the latest article we published: The Secrets Traders Can Read From Candlesticks & Price Action. After releasing this article we received a lot of questions and requests for more information and this video goes through these questions and extra price action tips and tricks that will help traders make high probability and low risk price action trades. To watch this video see here: The Clues Traders Can Read Through Price Action
USDSGD ?new pairs ?
Hello John,
there are a lot of different pairs and markets we watch and discuss including the Majors Forex pairs such as EURUSD & GBPUSD, through to the metals Gold & Silver and the Major future indices such as S+P500 & CAC40 etc and even other markets like Oil. It can all be traded with price action. As long as the market has high liquidity and volatility. In other words it moves a lot and does not have crazy gaps and periods of no movement.
Johnathon