The USD/SGD has exhibited more selling pressure early this week and the currency pair is near important long-term support ratios. As of this morning, the USD/SGD is near the 1.33100 level with fast price action being displayed as financial houses and speculators pursue their trades. The trend of the USD/SGD has shown a solid move downward since September 2022.
Now five year charts may need to be used by technical traders for more insights regarding lower values. While the USD/SGD has delivered a solid move lower, there are no guarantees while speculating and the near term may prove dangerous.
U.S CPI Data will Impact the USD/SGD Tomorrow with Volatility
Having already traded to lower values not sustained since June of 2021, some speculators may believe the USD/SGD is approaching oversold territory. The lows of the USD/SGD essentially traded near the 1.31790 ratios for brief moments in January and February of 2021. Prior to this the 1.30500 levels were seen in 2018.
So while the U.S Federal Reserve has hiked interest rates over the past year and the USD/SGD climbed to a high above the 1.45000 ratio in the middle of September 2022 which had last been accomplished in March of 2020, the USD/SGD has steadily sold off since then and is now testing long term lows. This leave speculators with a tough question regarding direction as financial houses consider their next moves.
- Consumer Price Index numbers from the U.S. will affect the USD/SGD, but because lows are already being tested it may have some traders feeling uneasy regarding potential direction.
- The old saying that the trend is your friend may prove to be wise in the coming days, but speculators need to remain cautious and conservative with the USD/SGD.
USD/SGD Support Levels have been Durable since Getting Hit Early this Week
Support levels near 1.33000 were broken early this week as the USD/SGD continued to show powerful selling. However, since then the 1.33000 ratios has become a focal point and has proven difficult to sustain the values below. Perhaps if U.S. inflation data comes in weaker than expected late tomorrow, the USD/SGD could test lower values. Traders should be ready for choppy conditions and then a volatile reaction after the U.S. CPI numbers are published. Risk management will be critical. Traders who want to keep pursuing lower values in the USD/SGD should not be overly ambitious and aim for quick-hitting profits.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.33190
Current Support: 1.32950
High Target: 1.33400
Low Target: 1.32650
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