~ Week Of May 23rd 2016 ~
Sellers Showing Signs Of Weakness
Published by Jay - May 22nd 2016
The last 4 months has seen the USDSGD pair make a nice run down despite an attempt by the bulls to move higher through the key level on the 25th of March. During the past 2 weeks however, we have once again seen buyers move into the market. So what is the recent price action telling us, and where could the market possibly head?
Looking left on the chart, we can see that price retested the 1.37400 area for the second time, with the buyers proving too strong as shown by the large bullish candle punching through the key daily level and closing above it. With signs of consolidation on Thursday and Friday with the two inside bar formations, it's possible that the buyers are waiting to put their weight behind another move in the coming week.
There is a minor resistance level up ahead, but if we can see price break the inside bar candle highs and not falter at the minor resistance level where price previously reacted, than we could possibly see another move higher.
Of course, we can never be 100% certain of any trade in the Foreign Exchange Market, but by considering the recent price action and the story that it's telling us, we can gain an insight into what the big players may be doing.
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