The USD/SGD is near the 1.35540 ratio as of this writing, which is a mark slightly lower than it was last week at this time. However, the important difference for speculators now is that last week at this time behavioral sentiment was getting loud regarding nervousness, and risk-adverse trading was producing a stronger USD across the board in Forex. In fact, the USD/SGD hit a high of around 1.36255 on early Thursday last week. However, since touching this value which had not been traversed since December of 2022, the USD/SGD has incrementally lowered.
Yes, nervous sentiment still exists within the broad markets and financial institutions do have reasons to remain cautious, but speculators with a taste for speculative short-term positions may believe there is an opportunity to pursue selling positions of the USD/SGD. This is based on the notion that perhaps the fear level of the global markets is going to start running out of power and actually find calmer conditions.
Speculative Positions Betting Against the Mid-Term Trend Need Risk Management
Traders who have the stomach to bet against the rather strong trend upwards, which was produced by the USD/SGD since the 18th of July need to use cautious leverage and strong risk management. The momentum higher could still have some muscle behind it if financial institutions continue to buy into the frenzy of U.S Treasuries which have been making the USD stronger. However, if fear subsides – and let’s remember fear is only a residue of the unknown – then the USD/SGD could actually produce more incremental selling.
- Short-term sellers need to protect their positions against the potential of reversals upward if support levels put up temporary fights.
- A selling strategy if you are betting against the established mid-term trend would be to look for quick-hitting targets to take profits, while using slightly wider stop-loss levels.
- Traders that pursue wagers looking for downward momentum must use conservative leverage.
Support Levels for the USD/SGD are Intriguing near 1.35375
If trading in the USD/SGD shows the ability to traverse slightly lower, the 1.35450 to 1.35400 levels could prove to be targets for speculators looking for lower price action. Trading will likely be choppy today as risk-taking behavior is interpreted after a few weeks of very nervous conditions.
Existing Home Sales figures will come from the U.S. today, but this report is unlikely to cause bedlam in Forex upon its publication. If selling happens to build in the USD/SGD in the near term, the support level to watch will be around the 1.35375 mark technically. If this level is proven vulnerable it could signal a change in behavioral sentiment in the USD/SGD.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.35675
Current Support: 1.35450
High Target: 1.35865
Low Target: 1.35325
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