- The USD/SGD has seen choppy conditions early this morning, but trading has been seemingly cemented within the higher price range which was established on Friday after the publication of the U.S Non-Farm Employment Change and Average Hourly Earnings.
- The USD/SGD is trading near the 1.34560 ratio as of this writing; a high yesterday saw the 1.34875 value come within sight.
The release of Services PMI data yesterday in the U.S came in stronger than anticipated, the reading sent another shockwave through the broad Forex market which was likely caught off guard once again by the better than anticipated economic data from the States. While financial institutions believe the Federal Reserve is serious about wanting to cut interest rates, the potential of interest rate cuts taking place late in the spring as opposed to earlier is now becoming a reality.
Short-Term Highs and Resistance Levels in the USD/SGD
The USD/SGD is trading near values it also hit in the middle of January. And the higher price realm of the USD/SGD is again touching values seen on the 13th of December, this is important technically because it points out financial institutions are looking at the current price of the USD/SGD as having found equilibrium. The perception of a change to monetary policy in the U.S this coming March has nearly been defeated. The USD/SGD via its trading is likely going to have to deal with the reality the currency pair is going explore its current price elements until new impetus is delivered.
The 1.34600 to 1.34700 levels technically at this moment look like areas the USD/SGD could move towards, the question is when and how durable resistance is going to be. Traders wanting to wager on downside occurring in the USD/SGD may want to see these higher values challenged in order to pursue short positions. However, the USD/SGD could remain rather choppy within this higher range in the near-term.
Technical Traders may have the Advantage in the USD/SGD
Technically inclined traders who are looking at support and resistance levels may feel comfortable pursuing the USD/SGD in the near-term. No major economic data will be released from the U.S today or tomorrow, leaving Forex open to the current behavioral sentiment which has taken on a cautious tone. USD/SGD traders should use conservative leverage as they wager on targeted goals and be able to handle reversals which are likely to flourish as the current price range is fought.
- A short-term support level looks like it may be rather durable near the 1.34410 to 1.34350 levels for the time being.
- Traders who believe the USD/SGD has the ability to claw higher may want to let the currency pair simply track towards perceived support in order to look for slight reversals upwards.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.34610
Current Support: 1.34450
High Target: 1.34750
Low Target: 1.34350
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