USD/SGD Daily Symmetrical Triangle

Hi again everyone,

on my daily trawl through the charts today I happened upon a formation in a currency pair that I generally don’t spend a lot of time looking at – the Singapore dollar. One wider inspection you can see that the currency rate of the USD has been on the slide for some time.

With this symmetrical triangle though there is some sign of consolidation occuring – keep in mind though that there is no strict bias as to which way a triangle of this type needs to break out in so as to be valid.

If the direction of the wider trend is taken into account the trader would likely assume that the more likely breakout would occur to the downside in this case.

The dotted horizontal like is there as an indicator of where a potential stop loss order could be placed around – you can see that this area is a recent consolidation level so it may be worth considering – of course though the trader may figure that for not a lot of difference in pips value the stop (assuming it breaks to the downside) could be placed on the far side of the pattern altogether.

You can follow Ric and me on Twitter at RicCharts and DaveCharts respectively.

Good trading,

 

Dave.

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