The USD/SGD continues to exhibit a rather strong bearish trajectory. The price of the currency pair in early trading this morning is near the 1.32260 ratio. Holiday trading is in full effect and this will continue until the middle of next week. The ability of the USD/SGD to demonstrate significant downward momentum is important. The USD/SGD has correlated to the broad Forex market well, and the currency pair is hovering near crucial mid-term support last seen in August.
The USD/SGD reacted to lower-than-anticipated inflation data from the U.S. late last week with another leg down. On Friday of last week, the currency pair moved to a low of almost 1.32200 momentarily. Intriguingly as holiday trading volumes have developed in Forex, the USD/SGD has maintained a rather steady price realm with very little volatility.
Traders who want to pursue the SGD/USD today may expect to see a bit more volume compared to yesterday. Yet traders should understand quiet Forex conditions will linger because many financial institutions are not being called upon by their corporate clients to transact huge amounts of money during the holiday season.
USD/SGD 1.32200 Support Level Important Technically
Traders who have the desire to wager on downside price action in the USD/SGD near term are certainly going to notice the 1.32200 price level below. This support ratio has been quite durable and a test lower would raise eyebrows. If the USD/SGD begins to test values between the 1.32200 and 1.32100 realms, this would bring July 2023 prices into sight. Traders would then need to look not only at a six-month chart but would also have to begin examining a one-year technical perspective while dreaming of additional lower values.
Before traders get overly ambitious about the potential for a deeper trajectory, they must remember thin holiday trading may keep the USD/SGD relatively quiet in the short and near term. Betting on bearish positions in the USD/SGD may be attractive, but speculators should use entry price orders, along with taking profit and stop loss instructions with their brokers. Reversals higher will remain a part of the natural trading landscape, and the lower volumes within Forex could make the USD/SGD suddenly volatile.
USD/SGD Quick Hitting Wagers During the Holiday Season
- USD/SGD traders should be cautious and not be lured into using too much leverage because they believe quiet market conditions will be endless.
- A large unexpected order from a significant player in the USD/SGD could create strong price action that is not anticipated.
- While the downside looks attractive because of the weaker USD outlook, the near-term may be rather calm in the USD/SGD until larger trading volumes return.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.32350
Current Support: 1.32200
High Target: 1.32475
Low Target: 1.32035
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