The USD/SGD has maintained its higher price range after jumping upwards after the U.S Non-Farm Employment Change numbers created a whirlwind of buying.
Speculators who enjoy pursuing the USD/SGD may be in for rather an attractive end of the week. As of this writing the USD/SGD is near the 1.32400 mark, yesterday’s high was near the 1.32700 vicinities and so was this morning’s. The climb higher in the USD/SGD has temporarily halted the strong bearish trend the currency pair has displayed for a handful of months.
Traders may be looking at the current price range and feel the desire to bet on reversals lower, which could prove to be profitable or extremely costly. Monday’s high in the USD/SGD was over the 1.32910 juncture and then rather a choppy trading ensued. The near-term is likely to be rather speculative as the USD/SGD displays a battle for equilibrium.
Last Week’s USD/SGD Lows were Significant via Long-Term Considerations
On Thursday of last week, the USD/SGD fell to a low of nearly 1.30320, the last time this value had been seen was in January of 2018. The ability of the USD/SGD to decline to those long-term lows occurred after the U.S. Federal Reserve raised its interest rate by 0.25% and indicated another hike would occur in March. After hitting this lower value the USD/SGD began to incrementally climb and it was near 1.31000 as the U.S jobs reports were being published on Friday.
- The sharp rise in U.S. hiring certainly changed short-term behavioral sentiment in the USD/SGD as the currency pair soared. Friday’s trading finished near the 1.32300 mark.
- The 1.32300 level is intriguing, because as the USD/SGD now trades near the 1.32400 ratio, Friday’s high may feel like a target for some speculators who believe the currency pair has been overbought.
Behavioral Sentiment in the USD/SGD will likely be Nervous Today and Tomorrow
Having created a slight reversal lower after this morning’s early highs, the USD/SGD is now pressuring prices that could prove to be important psychologically for speculators and financial houses. The jolt upward in price which occurred on Friday after the U.S jobs data was a natural reaction, but the rather strong bullish move may now be looked upon as an opportunity to target lower values again. Traders should be careful as last Friday’s trading values are challenged and it might create choppy conditions.
Without any major U.S. economic data on the calendar today or tomorrow, technical trading is likely to be the dominant force for day traders to consider. However, the downturn the USD/SGD has been able to demonstrate since the end of September 2022 may still look attractive and it may have fundamental reasons for happening such as China being more active in the pursuit of commodities and having transactions being taken care of in Singapore. Speculators need to practice risk management, not over-leverage their positions, and have realistic targets.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.32680
Current Support: 1.32350
High Target: 1.32830
Low Target: 1.32080
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