The USD/SGD continues to trade near important short term resistance. Before going into the weekend the forex pair flirted with high water marks near the 1.36900 level before seeing bearish momentum take the USD/SGD lower and towards 1.36370. However, since flirting with support levels additional buying has developed. Choppy conditions are prevalent early today.
Since late March the USD/SGD has enjoyed a solid bearish trend, but since the 1st of September, the forex pair has incrementally risen. The resistance level of 1.36900 could prove an important juncture for the USD/SGD, if it is punctured higher the forex pair could begin to test a trading ground between 1.37000 and 1.37400 which is traversed in early August, and for a brief period after the third week of the month.
Speculators should keep in mind the trend of the USD/SGD has been bearish mid-term. On the first day of September, the forex pair was testing support levels not fully experienced since late January. Risk appetite is fragile though this morning in the global markets. The US is celebrating a holiday which makes trading volume lower. The sell-off on US equities late last week also added fuel to risk-averse trading which may have caused short term bullish sentiment to grow stronger in the USD/SGD.
Trading this morning for the USD/SGD has had a range near 1.36420 and between 1.36700. Speculators may believe the USD/SGD is approaching resistance levels which could prove to be worthwhile to seek selling positions. A limit order near the 1.36700 level while targeting lower values near the 1.36500 level cannot be faulted. However, traders should be aware of the possibility exists that short term fluctuations may be seen in the relatively light trading conditions due to the Americans being on the sideline today. Traders may be also tempted to think this means the USD will not be bought as much because of the absence of American financial institutions, but this idea does not accurately represent the world of international commerce and banking.
The next day of trading for the USD/SGD may be difficult to navigate. Traders who want to participate should gauge short term charts carefully and look for reversal opportunities to emerge. Limit orders should be used to protect against the possibility of sudden movements. The USD/SGD remains within a mid-term bearish trend but traders should be on the alert for choppy waters near term.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.36900
Current Support: 1.36500
High Target: 1.37100
Low Target: 1.36200
