The strong uptrend that began 19 seems to have stalled, with a high potential of about 1,257. This rally can be considered a technical decline in the post FOMC drop, and given this context, the failure of the bulls to fill the entire space is a strong affirmation that overall bearishness is not over yet, and we could yet see prices moving ad after FOMC low of 1.2422 and potentially beyond.
timetable
However, before we assume that the bear will simply push lower to here, we must look further confirmation that the short term immediate pressure will have the legs to run. Stochastic indicator is not really useful here because it seems to be a discrepancy between the last 2 pics Stoch and prices, suggesting that the signal during the down cycle may be impaired. In addition, the current readings are around the previous low, so it will not be surprising to see both stoch curve and the price level to turn higher from here. Preferably, the price needs to break the flexible support of 1253 as confirmation, but given the current levels Stoch, it is likely that the curve would oversold Stoch then, with the bearish momentum still in doubt. Therefore, a better scenario would actually see prices rebounded on 1253 first but remaining under the 1254 intraday resistance, allowing bears to rest and possibly more space to push lower.
Table Daily
daily chart is bearish, with the failure to break 1,257 more significant in relation to the card short term. Stochastic readings are in the midst of a bull market now, but Stoch curve tapered flat and threatens to shoot lower. Precedence say that readings can optionally form a peak here as we have seen other inflection points around the level of 50.0 before. Similarly, the importance of 1242 is higher by the daily chart as was the ceiling and Swing Low go as far as February 2013. As a result, prices are waiting to be able to bounce back slightly from there, even if the overall pressure is extremely bearish.
Interestingly, USD / SGD is not really react to the recent USD strength seen in the last two days, suggesting that SGD is inherently bullish. However, there are no strong reasons for strengthening SGD. MAS central bank should not change anything in the October review of monetary policy, while Singapore's economy is not at its highest point, with a drop in exports and industrial production through a season turbulence. Therefore, it is clear that technicals is to have a field day currently, influencing the price action considerably. If this is true, then the probability of 1257 holds and reach 1,242 increases, and we could even see a further bearish acceleration if the USD begin to weaken
Links :.
NZD / USD Technicals - Remain Under 0.83
Rhyme And Reason Not A Concern EURO Dollar Gold
Gold Technicals - The rise on concerns the US Budget
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