The mantra proclaiming, forex trading is never a one-way avenue that should be practiced by all traders. New and experienced speculators need to remind themselves that unseen market forces are always at work and trends while part of the trading reality are often infiltrated by sudden transactions that affect forex. While the USD/SGD remains within its stronger bearish value range, the forex pair has seen some buying develop the past few sessions.
Support levels have incrementally risen the past few days of trading and this might make short term technical charts look rather bullish to some. Resistance levels however have not abruptly been altered and this may lead stubborn traders to conclude dangerously that the bearish trend which has prevailed mid-term will show its teeth again. The word ‘dangerously’ is used because conclusions regarding technical movements in forex can lead to trading which can prove costly when you are wrong.
However, trading this morning in Asia while mixed among equity indices still has a rather optimistic sentiment surrounding investor attitudes. The support level of 1.37150 does not look convincing and speculators who target bearish momentum to develop may look at this juncture as an inflection point. If the nearby support level is penetrated lower it may be believed that the 1.37000 juncture for the USD/SGD will be retested.
Resistance above near the 1.37400 appears to look strong. This observation should set off alarm bells in experienced speculators heads and lead them to suspect that if the global markets remain mixed today and do not see a real sense of direction via equity indices, that forex pairs may consolidate.
If trading for the USD/SGD remains in a tight range it will open the door to test the 1.37150 to 1.37400 range short term and allow speculators to take advantage of small changes in value. However, to accomplish these limit orders are needed to grab profits quickly. One way to do this is if the market goes against you and place take profit orders closely using limit orders to capture the direction you believe the market will trend, and to place your stop losses a bit further away from the value range so you are not knocked out of your trade too quickly.
The USD/SGD technically indicates sideways price action may be part of today’s results. Meaning traders should be patient if they are looking for bigger movements. If a speculator wants to remain bearish they cannot be faulted, but they may want to trade small movements today to take advantage of consolidation which appears to be a likely ingredient of the forex market today.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.37400
Current Support: 1.37150
High Target: 1.37600
Low Target: 1.37000
