The USD/SGD is trading near important short term resistance early this morning. The Singapore Dollar has enjoyed strong bearish momentum mid-term, but the bullish trend which emerged early this week did break through resistance levels with relative ease. However, the resistance junctures which have been broken upwards the past two days are well within the downward technical ratios that the USD/SGD has enjoyed the past month.
Short term resistance appears to be 1.36420 for the USD/SGD and this level is very close to the current price action of the forex pair. Speculators may eye this level and suspect after reversing higher the past two days of trading, the Singapore Dollar could be ready to resume its bearish trend versus the US Dollar near term. Technical traders may interpret current resistance levels may effectively be able to work as potential stop loss markers.
Global risk appetite continues to be rather optimistic within equity indices and this sentiment doesn’t seem as if it is ready to stop soon. The markets are never a one-way avenue and traders always need to understand there is a potential for reversals and sudden fluctuations. However, since the USD/SGD has already reversed higher and is testing important short term resistance, an opportunity for traders to potentially take advantage of this move which has occurred and wager on a bearish trend to develop short term is intriguing.
Higher resistance around the 1.36600 level could prove to be very important if buying remains prevalent within the USD/SGD. This level is still well within the downward trend technically the USD/SGD has experienced the past month. If the forex pair was to break this level higher it could mean a retest of the 1.36700’s region could prove a battleground that would set off alarm bells within trading rooms. But can the recent bullish movement of the USD/SGD be sustained?
The USD/SGD may attract speculators who believe the sudden buying spree is not going to last much longer. Technically the USD/SGD remains within a solid mid-term bearish direction. Traders looking to sell the USD/SGD within it current price range of 1.36350 to 1.36400 cannot be faulted if they want to pursue the potential for more downward movement to resume.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.36420
Current Support: 1.36200
High Target: 1.36600
Low Target: 1.35750
