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.

IG Charts

The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.