The USD/SGD is trading slightly above important lows as bearish momentum in the currency pair has delivered another solid downward trend.
As of this morning, the USD/SGD has taken another lower turn and is near the 1.32450 ratio with solid price velocity being displayed. The USD/SGD is traversing only slightly above lows seen on the 23rd of March when the currency pair approached the 1.32335 vicinities. The fresh lows this morning are intriguing for speculative day traders because not only are depths from nearly two weeks ago being challenged, but even lower values from early February are now starting to come into sight again and may become conscious targets by financial institutions.
The aggressive selling demonstrated the past day and a half may indicate behavioral sentiment is preparing for potentially important evidence the U.S. Federal Reserve may have to become less aggressive with its interest rate policy. The U.S Non-Farm Employment Change numbers are on the schedule for this coming Friday, and so are the Average Hourly Earnings data. Both of these reports will certainly affect market sentiment and if weaker-than-anticipated outcomes are exhibited it could create more momentum downward for the USD/SGD.
Speculative Market may be Building in the USD/SGD
Traders should keep in mind that many financial institutions will shutter their doors starting on Friday for a long holiday weekend. The coming Good Friday and Easter holidays are definitely going to create thin trading volumes in Forex and this could allow for volatility in the USD/SGD in the coming days if unbalanced orders rip across trading desks. Speculators must be braced for potential fireworks suddenly developing, and use risk management wisely.
- The lower trend developing in the USD/SGD highlights the solid bearish move the currency pair has enjoyed since the second week of October 2022.
- Yes, reversals higher certainly occur in the USD/SGD, trading is not a one-way direction, but the currency pair has continued to display rather solid bearish behavioral sentiment.
- Traders may be positioning their USD/SGD wagers before the U.S. data on Friday and when volumes decrease because of the upcoming holiday weekend.
The 1.32400 Level is now in Focus and is Important as a Trading Ratio
If the USD/SGD breaks below the 1.32400 level today and tomorrow, and sustains value below this ratio, it could ignite the belief further selling could be demonstrated which will target the 1.32300 to 1.321000 marks. While seemingly a simple perspective, if the 1.32200 level is challenged, this would put the USD/SGD in a position to test the lowest parts of its strong bearish depths seen the last week of January and into very early February of 2023.
Traders seeking additional selling pressure cannot be blamed, but they need to remain careful. If the U.S jobs numbers come in surprisingly strong on Friday this could turn Forex and the USD/SGD into a violent whirlwind that is very costly into early next week.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.32540
Current Support: 1.32400
High Target: 1.33150
Low Target: 1.31960
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