The US dollar fell against the Singapore dollar during the beginning of the session on Wednesday, but found support at the 1.42 level. This is an area that has previously been supportive in the fact that we formed a hammer is also a very positive sign. Because of this, if we break above the top of the hammer I like buying this pair as it not only is in an uptrend, but the hammer itself is a very positive sign. I think at this point in time the market will continue to go higher simply because of the lack of interest in Asian economies right now. Remember, Singaporean banks tend to be the financiers of Asian construction, and Asian economies are slowing. In that scenario, it makes sense that people would prefer to own the US dollar over a funding currency in the Asian theater.
Continue to buy pullbacks
Believe that this market will continue to offer buying opportunities every time it pulls back, and on signs of support I am doing just that. I believe that there is a significant “floor” in this market somewhere near the 1.40 level, so it is not until we break well below that area that I would consider selling. Ultimately, I would have to see a change in the general attitude of the US dollar overall to start selling here, because I believe that Singapore is in exactly the first place where people were going to be thinking about putting money if the US dollar slows down.
Ultimately, I think we go to the 1.45 level over the course of the next couple of weeks, but keep in mind that this pair does tend to grind instead of move rapidly. It does trend well, it’s just that it is a bit of a slow move are at times. That’s okay though, a nice steady trend is a nice refreshing change over what we have in other markets in my opinion.
