USD/SGD Weekly Analysis for Singapore Binary Options
Contents
Introduction
The previous weeks have been favourable for the U.S dollar when paired against the Singapore dollar as we give a further analysis of the pair.
Price drop in Wall Street following escalated Sino-U.S. Trade War
The S&P 500, Dow, and Nasdaq Composite made a decline of about 0.24%, 0.34%, and 0.21% respectively following a threat on Friday by U.S. President Donald Trump to impose tariffs of about $467 billion of goods on Chinese imports.
As a form of retaliation, Chinese officials on Tuesday according to a breaking news, plan to ask the WTO for permission to impose sanctions on the U.S, with Beijing to place the request in the coming week.
About $11million in 1MDB funds to be returned to Malaysia
In the news from Kuala Lumpur (Reuters), a court in Singapore ordered the return of about $11.1 million dollars of seized funds back to Malaysia. This fund was linked to a scandal where Singapore is among 6 countries investigating the syphoning off about $4.5 billion from 1 Malaysia Development Berhad (1MDB).
Weekly Chart of the Singapore 30
Making reference to our last analysis of the Singapore30, we suggested a break below the trend line implied a continuation of the bearish trend. At this week’s open, price opened below the trend line signalling further short of the pair. With this move in play, there is a high probability of a weak Singdollar.
Daily Chart of the Singapore 30
From the above daily chart, we get a clear view of the happening of the daily chart, as a double top price chart pattern formed on the 9th of August, followed by a bearish breakout of a bullish accumulation pattern on the 30th of August. Still moving forward on the 4th of September, price formed another bearish accumulation pattern, further causing the price to plummet.
Technical
The daily, 4hourly and 2hourly charts are considered our lower time frame views for housekeeping, best suited for trading binary options. Once a Singapore binary options trader, I would subscribe to Singapore binary options brokers that offered these charts for clients, as most do not offer these services. Check out the brokers’ section of our website for a list of our recommended brokers.
USDSGD: Monthly Chart
Although most traders of binary options do not consider the time horizon for entering positions, others still find it useful for having a broader view of the security they consider. Making reference to the monthly chart of USDSGD currency pair, we observe that the pair still maintains a bullish outlook following a bullish price close of August. The pair continues to establish consecutive bullish candles after breaking out of the channel in the month of May, as it continues to trade above the 65-period moving average.
USDSGD: Weekly Chart
Taking a peek at the weekly chart here, the transition of the price chart from a bearish to a bullish direction is simplified as the chart displays price action patterns in the form of bearish accumulation patterns and bearish breakout of bullish accumulation patterns while the pair was on its way down. A couple of weeks after the month of March, there was a breakout of bearish accumulation pattern that completely switched the outlook from bearish to a bullish trend.
After breaking out of a more recent bearish accumulation pattern on the 23rd of July, the pair later made a correction of the bullish price close as a result of the breakout, later using the bearish accumulation support as a springboard for a further upside move.
USDSGD: Daily Timeframe
A look at the daily chart of the pair reveals a more oscillatory nature as the pair begins to form bullish accumulation patterns followed by bearish accumulation patterns on 20th June. The bullish accumulation support established at the formation of the price action pattern moving forward became a strong support standing the test of time as price later bounced off of it. This lead to another group of bearish and bullish accumulation pattern which were formed on the 1st of August. This date was one with a confluence of price action and chart patterns with a bullish hidden divergence pattern.
USDSGD: 4-HOURLY Timeframe
From experience chart patterns, often establish failures in the form of breakouts. An example of such is the breakout of the bearish hidden divergence pattern formed on the 3rd of September. Fast forward a couple of days after, the pair established a combination of bullish accumulation and bullish hidden divergence pattern on the same date September 6 and 7. However, the most recent pattern formed on the 10th is a bearish regular divergence pattern formed with potentials of causing the price charts to plummet from this time horizon. As a safety measure, we intend to place a stop loss order slightly above the resistance price of the bearish divergence pattern.
USDSGD: 2-Hour Chart
Similar to the 4-hour chart is the above 2-hour chart, which I find well suited for intraday and binary options trading. Here a bearish regular divergence pattern is observed, sending the pair south towards the 65-period moving average.
Projection and Conclusion
With the formation of the bearish divergence pattern on the 4-hourly chart, a correction or even possibly a bearish closing week is expected following the negative fundamentals plaguing the U.S. dollar and the technical indicator directions. While we enter a short-selling trade at this point, we are also on the lookout for moves that may cause the pair to resume its bullish trend, either as technical or fundamental announcements.
Our Recommended Singapore Binary Options Brokers to trade USD/SGD
Best Regulated Broker: IQ Option
IQ Option is the world’s leading EU regulated financial broker based with a revolutionary platform for all traders. Very popular for crypto and USD/SGD trading. Read IQ Option Singapore review
- Best Trading App for Binary Options
- Minimum Deposit of only $10
- Minimum Trade of $1
- Trusted Broker
- $10,000 Virtual Funds ( Demo Account )
- Quick Withdrawals
- Outstanding Platform
- Weekly Tournaments
- Gain up to 98%*
Best Binary Options Broker: Olymp Trade
Olymp Trade is an award winning binary options broker with an excellent trading platform support and education tools. Read Olymp Trade Review
- Risk-Free Trades
- Minimum Deposit of only $10
- Max. 90% Payout
- $10,000 Free Demo account
- Free TrainingEducation : 18 Indicators, 7 strategies and 28 webinars 25% Deposit s
- Certified Platform
- Quick withdrawals
Best Binary Bonus: Binomo
Binomo is a regulated binary broker with a wide range of assets to trade and amazing promotions ( bonus, tournaments prizes,..) .Read Binomo Review
- 25% Deposit Bonus ( 100% Bonus VIP accounts )
- Minimum Deposit of only $10
- Minimum Trade of $1
- Max. 95% Payout
- $1,000 Virtual Funds ( Demo Account )
- Weekend trading
- Free training
DISCLAIMER
I've been a professional trader for over 5 years.
Currently I work as forex analyst for different investment companies.
- EURUSDWeekly outlook – 7th January 2022 - January 7, 2022
- BTCUSD – Weekly outlook for Bitcoin Price – 23rd December 2021 - December 24, 2021
- USDSGDWeekly outlook for Singapore Dollar – 17th Dec 2021 - December 17, 2021
Tagged with: singapore binary options
