Speculators with selling fever in the USD/SGD have been rewarded, the move lower in the currency pair has taken on a rather strong dose of momentum and proven support levels are vulnerable. Price velocity downwards has increased, and as Forex volumes have become larger again with the return of U.S financial institutions the past couple of days, the USD/SGD has sustained its trend lower. However, experienced traders know there is no such thing as a one-way street via trading trajectories.
The USD/SGD is near the 1.33020 ratio as of this writing with fast changes in values being exhibited. The currency pair touched a low of nearly 1.32840 earlier this morning, which is a depth that had last been seen on the 31st of July. The USD/SGD was trading at a high of around 1.37685 on the 3rd of October and remained within the top part of its range until the first of November approximately, but since then has seen bearish sentiment dominate.
USD/SGD a Solid Barometer of Global Sentiment
Because Singapore is at the modern crossroads of international trade, Forex trading in the USD/SGD is a solid indication of behavioral sentiment. The move lower in the USD/SGD is reflected well across the board in most major currencies teamed against the USD. The USD/SGD touched lows of nearly 1.31730 in the middle of July. The low values seen on six-month technical charts may look enticing to USD/SGD traders, but they should not bet blindly on these values because they likely will prove difficult to accomplish in the near term.
USD/SGD and Speculative Support as Reversals Occur
- The U.S will publish GDP statistics today, and the growth numbers via the Gross Domestic Product results will move the broad markets including the USD/SGD.
- While the growth numbers produce a lot of noise regarding the U.S economy, traders should remember this may prove to be momentary, if the numbers are around expectations.
- Speculators should anticipate choppy results in the near-term as the USD/SGD likely runs into some headwinds as it tries to move lower, this possibly because financial institutions may begin to think the currency pair has moved too quickly as it recaptures its lower depths.
The 1.33000 level will prove interesting today as a psychological lynchpin, if the USD/SGD can sustain momentum below this depth it will show sentiment continues to lean towards lower depths. The question is how far the USD/SGD can traverse downwards after accomplishing its fast-paced track lower in the past week. Speculators betting on downside price action may want to use quick-hitting targets to cash out of winning positions when they are found before sudden reversals burst higher in the short-term.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.33040
Current Support: 1.32940
High Target: 1.33485
Low Target: 1.32670
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