An ugly USD short?

The USDSGD just broke out below its multi-week support level and the US-Dollar Index is also showing signs of weakness.

The only thing that makes this market unattractive to trade is the noise on the left. The last time the price visited those lows, there was a lof of back and forth and the price squeezed the shorts multiple time.

Even worse, the price will be running into a strong area of previous resistance if the short succeeds which makes estimating the potential profit size tough.

If you believe that the USD short has a chance and you have a longer-term holding horizon, this might be a chart for you. However, charts like the USDNOK might offer more attractive opportunities. This is where market selection comes in.

Safe ride!