FxWirePro: USD/SGD uptrend remains intact; delta hedge to confront puzzling swings

We've been reiterating that the prevailing uptrend for USD/SGD seems to be exhausted in an attempt to evidence 3 month's high but looking weaker as it was unable to sustain the same.

The leading oscillating indicator RSI (14) signals overbought scene as the RSI curve touches 70 levels which is overbought level, the price dips converges the strength index curve.

But on the contrary slow stochastic curve is currently signifying the buying interest back again as %K line crossover near 70 levels.

Since we anticipate the downtrend in this pair, the At-The-Money delta call of USD/SGD value indicates the option's equivalent position in the underlying market.

ATM calls might be luring for many speculators or hedgers at this moment.

Let's suppose for instance, as shown in the diagram USD/SGD ATM call option with Delta +0.5 can be delta hedged by selling 50,000 USD against SGD in the underlying FX market.