The USD/SGD currency pair is trading near the 1.34824 juncture as of this writing with polite price action being displayed for wagering considerations. The value of the USD/SGD is again stumbling on lower depths which have brought long-term support levels into plain sight. However and importantly for short-term speculators, the USD/SGD has seen reversals higher when this price vicinity has been tested before this December.
On the 5th and 13th of December the USD/SGD sank to around the 1.34350 mark only to experience rather solid buying come into the market. Both times the long-term lows were touched the USD/SGD then suddenly bursts higher above the 1.36000 ratio. Since Monday of this week the USD/SGD has certainly continued to see its bearish trend renewed and a low was achieved this morning of nearly 1.34670.
February of 2022 Values being tested again by the USD/SGD
Before USD/SGD traders who have bearish objectives pursue further downside price action, which may actually be the correct technical perception, they should acknowledge a key near-term factor. Holiday trading is now upon the financial world and volumes are dropping significantly, which means there is a strong potential for sudden volatility in the USD/SGD. As tempting as it may be for speculators to try and pursue the USD/SGD, they should understand risk management will be needed and that unexplained surges can be produced which have little correlation to short-term technical charts.
- Support near the 1.34700 level should be monitored, it this ratio is proven vulnerable and the USD/SGD can sustain value below this mark for a couple of days this could be a bearish signal.
- The USD/SGD has managed to cause significant reversals higher when lows have been previously challenged this month.
- Because of holiday trading developing if more selling pressure is seen, there is reason to suspect buyers may be missing from the Forex market this time around.
USD/SGD Traders Participating in Forex in the Near Term Need to be Cautious
Any day trader who is pursuing the USD/SGD in the near-term needs to understand they are betting in a market with a potential for violent moves. Trading volumes are growing thin and this means price action can become extremely slow, but then suddenly experience large moves because a large transaction has come into an unbalanced Forex market.
The USD/SGD is a tempting sell for bearish traders, but risk management will be needed to safeguard wagers conducted in the near-term. Aiming for quick hitting results may make a lot of sense, but traders may need a strong dose of patience for market action to produce desired moves.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.34880
Current Support: 1.34700
High Target: 1.35260
Low Target: 1.34075
Ready to trade our Forex daily forecast? We’ve shortlisted the best online forex trading platforms in the industry for you.