Day traders of the USD/SGD have certainly had their emotional strength tested the past few days within the currency pair. After dropping to a low of nearly 1.32150 on Thursday, which touched values seen one week before, the USD/SGD has reversed higher and it has largely managed to hold onto gains. In fact, in early trading this morning the USD/SGD has been incrementally climbing and the Forex pair is around the 1.33350 mark as of this writing.
If speculators were blindly betting on downside momentum to continue the past few days they may have been more than disappointed. The USD/SGD remains within the lower framework of its one-month chart, but traders may have been surprised by the price velocity of the move upwards late last week and the currency pair’s inability to provide a strong reversal lower to retest support levels.
Highs from this Past Friday in the USD/SGD are within Sight
On Friday the USD/SGD touched a high of nearly 1.33420 and the current price of the Forex pair is trading below this level, which some traders may believe could demonstrate durable resistance. Financial institutions continue to be dealt with rather unclear economic data and global central banks have not helped create clarity either. While the USD/SGD has certainly traded lower over the past month, the past two and half weeks have actually produced a slight climb upwards. However, the current price of the USD/SGD is fighting important resistance and this should be monitored closely.
- If the USD/SGD shows the capability of staying beneath 1.33400 over the short and near-term, some speculators may be tempted to look for downside momentum and a retest of existing support levels.
- The U.S. will see the ISM Manufacturing PMI statistics today and this could provide a momentary spark for the USD/SGD depending on its outcome.
Short-Term Traders Should Brace for Choppy Conditions
The U.S. will be releasing jobs numbers this coming Friday and because of this, the Forex market may prove to be rather choppy over the next few days. Traders will look closely at today’s Manufacturing PMI results from the U.S., but it is the Non-Farm Employment Change and Average Hourly Earnings data that could rattle the USD/SGD.
For additional USD weakness to develop, U.S. data likely needs to come in near expectations or lower than expected. The U.S economy has shown some strength recently via the Gross Domestic Product gains made last week and this has spooked some financial institutions and is a reason for the recent upwards movement of the USD/SGD.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.33410
Current Support: 1.33300
High Target: 1.33490
Low Target: 1.33210
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