FXStreet (Barcelona) – USD/SGD traders could soon see a period of short-term weakness on an intraday basis, allowing for some severe overbought studies to unwind.
The 50 SMA is above the 200 SMA on the hourly chart, at a distance superior to the daily ATR. This indicates an up-trending condition.
Longer-term traders following the 4H stochastic above 50%, don’t necessarily need to liquidate their long positions, but the 1-hour stochastic is increasingly hinting that it could be necessary soon.
The oscillator has build a plateau above the 70% level for more than eight hours and has just abandoned overbought territory with the recent hourly close. This is a warning of a potentially important short-term top.
(Market News Provided by FXstreet)