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Day three: our potential USD/SGD trade

I highlighted yesterday that the pair could stage somewhat of a rally given how oversold it was on the hourly chart. 

This did come to fruition, with USD/SGD staging a mini rally to 1.2665, before finding sellers on poor US data.

From a trend perspective I would be staying short on this pair, with bearish conditions seen on the daily and hourly chart. The weekly chart is turning more bearish, but I still want to see the MACD cross below the zero line. 

A close below 1.2585 (the 38.2% retracement of the October to January rally) is needed for the pair to materially move lower, and over the past couple of weeks this retracement level has contained the downside.

I have pulled my stop loss lower to 1.2720, just above the February 10 high.

USD/SGD
IG Charts

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