By: DailyForex.com
The Singapore Dollar has been gaining on the US Greenback for some time now, hitting an all time high against the Greenback in July of 1.1987. Price has returned to this area after climbing over 1100 pips in August & September and last week attempted to push the chart lower once again but traders rejected the idea, possibly temporarily of a sub 1.2150 USD/SGD with last week's close of 1.2231. The result was a Weekly Pin Bar, or Doji actually. Some call this a 'Dragonfly' Doji because of its long tail. The potential or meaning for traders is basically the same however as it often means price will reverse and head in the opposite direction...in this case, higher.
Although there is not enough data for strong historical support levels to be established below 1.2200, Pivot points along with Support & Resistance levels can be calculated manually to give us something to work with. In this case, Weekly S1-S3's are at 1.2170, 1.2116 & 1.2084 with Weekly Resistance levels at 1.2255, 1.2288 & 1.2341. The Weekly Pivot also sits below the current prices at 1.2201 and is acting as support. While prices are falling slightly during Asian trading, it is possible that a break of last weeks high will bring a Bullish run that will test the Weekly R1 and Weekly R3 while a break of last week's low, 1.2148 could see the pair resuming its Bearish trend to 1.2100 or lower...possibly a retest and double bottom is in store at the 1.2000 area.
Happy Trading!
