The USD/SGD is still trying to break the 1.3242 level

The US Dollar versus the Singaporean Dollar has stalled at the resistance zone around the 1.3242 level. At the current stage, if there is a bounce to the downside, a double top pattern may be formed. We must keep in mind that the longer the price stays consolidated around the current levels, the higher the probability of the price breaking out instead of bouncing. If we see a breakout to the upside, then we patiently wait for the pullback to the same 3242 zone for a possible long entry. Up to now, the uptrend remains intact.

Double top on the USD/SGD?

The US Dollar versus the Singaporean Dollar is currently visiting an important resistance level around the 1.3242 area. If the price bounces to the downside from this zone, a double top pattern may formed. The double top pattern is a bearish reversal pattern and the price may try to go and test the confirmation line of the pattern which is the 1.3000 level. Besides the 1.3000 level, we also see around that area the 55 exponential moving average on the daily chart. We should wait and see if the price bounces to the downside from current levels and drops to the 1.3000 area or if it breaks the resistance at the 1.3242 level and shows a pullback for a possible long entry.

AUD/USD 4 hour chart, Descending Triangle?

Apparently, the AUD/USD has formed what it looks like a descending triangle on the 4 hour chart, due to all the consolidation that the price has had lately. During these periods of consolidation is when these chart patterns appear, many with possible trading opportunities. On the formation shown on the chart, it would be better to use the 0.8100 level as our confirmation line or breakout line. If the price breaks below this level and pulls back to it, then we could get a chance of going short, expecting a continuation to the downside of the main bearish trend.

Symmetrical triangle on the EUR/JPY 4 hour chart

The Euro versus the Yen has been much undecided today, even though during the week there was a lot of volatility, but not a clear direction or trend. That volatility has formed a symmetrical triangle on the 4 hour chart. A symmetrical triangle is a chart pattern which could break in any direction, but if the trend coming into the pattern is bearish, then there is a higher probability of seeing a breakout to the downside.

Sustainable downtrend on the EUR/USD

On the daily chart of the EUR/USD we can see that since the 55 period exponential moving average crossed below the 200 period exponential moving average, the pair has kept a very sustainable downtrend, supported by the fundamentals from each region. The 55 EMA, purple line, has acted as a very good resistance lately. The distance or separation between the 55 EMA and the 200 EMA is relatively wide and it looks like it will separate even more.

However, the rate at which the pair has been falling is getting smaller and a breakout of the 55 EMA is possible. If that is the case, then the price may try to correct all the way to the 200 EMA.

Adapt in the final trading weeks in 2014 Webinar

As we approach the end of the Year and the coming of the new one, we start making a recollection of what we did and how we can do better. The final days of the year also brings new changes in the markets, which we must consider in order to keep our trading as profitable as possible. ActivTrades is providing an excellent Webinar for these final days of the year, presented by Malte Kaub. To register, just go to the following page:

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High volatility on the Dow Jones

The Dow Jones Index has been very volatile for today, along with the major markets due to the high price fluctuations on Crude and a comeback of risk aversion. The index has found a good support around the 17000 round number level, with a good resistance at the 17433 level. The current Doji formation is an indication of indecision with high volatility due to the long shadows. If the next daily candle is bullish, then we could see an end to the current correction and the price may try to go higher and probably try to visit the next round number level of the 18000.