We see an injection of volatility in the USD/SGD pair that could present a trade for opportunistic readers.
The rally in today’s trading has expanded the 2-standard deviation bands for several consecutive hours beyond the maximum width seen in a week of trading. Moreover, the same 1hr charts show recent close prices printing above the 50-period EMA, a bullish condition that should it persist, would help keep prices above the SAR indicator.
A change of direction in the parabolic SAR after two sessions of upward price movement in the USD/SGD would imply longs are taking profit. Risks exist as the volatility and the vibrant up thrust in price extend to higher time frames.
(Market News Provided by FXstreet)