Risk appetite has remained steady in Asia and the USD/SGD has continued to produce a bearish trend which has vanquished short term support levels. The current value range of the SGD is between 1.37850 and 1.37930 and speculators may believe these levels offer an opportunity to seek further selling opportunities. Resistance near the 1.38100 level appears capable short term, and if used wisely with limited leverage this could give traders a chance to short the USD/MYR and explore its bearish trend.
The past five trading sessions have seen resistance levels incrementally decrease while support levels have proven weak. The direction of the marketplace is never one way and risk management must be used, but speculators have also likely noticed the US Dollar remains weak against many other major currencies and current global sentiment may continue to produce an erosion of value for the world’s dominant currency.
Support levels near 1.37750 are nearby and have proven vulnerable. If sustained selling occurs and a push lower is able to be achieved, the 1.37600 juncture could become a target for speculators. Yes, when the 1.37600 mark was approached earlier today it produced a sudden reversal higher, but if it is tested again and falters the USD/SGD will find itself in waters it has not swam since March.
Singapore was an early victim of coronavirus, but it did act immediately to curtail the infection rate and its work has been widely applauded. The USD/SGD found itself under stress in late January and buying of the US Dollar against the Singapore Dollar proved strong until late March. The current values of the USD/SGD are still higher than the pre-pandemic timeframe.
Singapore remains challenged economically by the implications of coronavirus and the total impact is still hard to quantify. However, the nation has been part of the vanguard trying to battle the virus with tough mandates. The Singapore Dollar has recovered a lot of its value since late March with a strong bearish trend of the USD/SGD.
Speculators may want to continue to pursue its trend and see if support levels stay vulnerable. Selling the USD/SGD remains an attractive trade if proper risk management is used to safeguard against sudden reversals.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.38000
Current Support: 1.37775
High Target: 1.38100
Low Target: 1.37600
