The USD/SGD is trading near important resistance after experiencing a strong wave of nervous sentiment within forex yesterday. While the mid-term bearish trend of the USD/SGD is still within a comfortable price trajectory, the short term has seen risk adverse behavior have a definite effect on the forex pair and an incremental move higher.
Speculators who choose to participate in the markets with any asset class over the next handful of trading days should not be blind to the potential of volatility due to the upcoming US elections. Trading sentiment is certainly experiencing a strong degree of generated nervousness and there are also additional dark clouds hampering the investment world as financial houses take into consideration a second wave of coronavirus may have unforeseen economic implications on global commerce.
However, the USD/SGD has demonstrated a solid bearish trend mid-term and speculators need to question when its selling momentum will regenerate. Trying to time the market as the US election looms can be a dangerous endeavor and wagering on the USD/SGD within choppy conditions may prove a fools game, but it also may be alluring and potentially profitable. There may be a desire to look for reversals sooner rather than later within the USD/SGD based on the belief yesterday’s bullish surge may have been overdone.
Finding the right opportunity to take a position within the USD/SGD may prove difficult. Traders may want to consider placing limit orders that follow the momentum of the forex pair to take advantage of developing trends. Which means that speculators should consider placing selling orders slightly below support levels with the idea that if trading is sustained below these junctures that further bearish sentiment will develop with the idea the USD/SGD is attempting a retracement lower.
Selling the USD/SGD under the present trading conditions will take a large amount of speculative fortitude because the choice is certainly challenging the nervous sentiment which is ample within forex and global indices momentarily. However, traders of the USD/SGD may believe the ability of the Singapore Dollar and its stature as an important currency within the financial world will serve as a foundation to create a bearish reversal.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.36510
Current Support: 1.36200
High Target: 1.36780
Low Target: 1.35950
