LONG USDSGD Trade - Took Profit

After shorting USDSGD at 1.5030 on February 6th, our target of 100bps was met on February 9th when we exited our trade at 1.4930, the low went to 1.4904.

Our strategy with USDSGD is every time SGD strengthens to 1.49, we will establish a LONG USDSGD position.

In this instance, on February 9th, we re-establish a spot trade LONG USDSGD at 1.4950 (Stop/loss at 1.4910) and also a 3 month call USDSGD option at 1.4930.

We have decided to take profit on the spot trade and exited at 1.5270 for a 320bps profit.

We will be holding on to our call option as we are ‘deep in the money’ and we have more time to play.

The daily chart as at February 18th shows that the USDSGD has powered upwards through all the breaks but it appears that it may be losing momentum judging from the stochastic curves.


To confirm, this we must also look at the weekly chart to see whether or not the momentum is loosing its stem.

The following weekly chart as at February 18th suggests that there is still some steam left in the LONG USDSGD: -


Nonetheless, we have decided to put a stop/loss level of 1.5250 for our call option.

Trading in currencies can be interesting, exciting and also safe if one respect risk and manages the risk accordingly. Never…….never………never…………maintain NAKED positions, you are only asking for trouble, always establish stop/loss levels at the time when you do a trade, it is prudent and it is smart.

Also, it is important not to be too caught up with trying to trade too many currencies. I would suggest that you focus on two at the most, it will give you focus and will also reduce the overall risk aspects.

The next currency we are eyeing is possibly the AUDUSD, we will update you accordingly. Do keep on following our blogsite. Happy trading.