A solid short-term bullish trend in the USD/SGD has demonstrated strength the past few days as forex has turned cautious.
USD/SGD speculators can look at a three month chart and see that the forex pair has demonstrated a large differential in value. In late September, as risk adverse conditions grew, the USD/SGD reached a high of 1.37880. Then, only two weeks later on the 9th of October, a low water mark of 1.35210 was displayed.
The reason the high and lows of the USD/SGD are being pointed out is because traders need to be prepared for turbulent forex results the next few days and should expect to see rather large reversals become evident. Speculators can use limit orders to capture momentum on short-term trends and need to be extremely vigilant as they monitor trading. It is strongly advised that speculators are fully engaged with their financial assets the next few days if their goal is to seek short term profit opportunities.
The USD/SGD has certainly turned bullish the past week and its climb upwards cannot be denied. However, this trend higher has taken place as investment houses have begun to turn cautious as they await the results from the US election for the White House and Congress. The outcome of the election will be certain to cause large movements in forex and equity indices in the coming weeks. Positioning financial assets before the election is a speculative endeavor for everyone, including investors and day traders.
While the USD/SGD has challenged resistance and made targets look rather vulnerable, the forex pair actually is maintaining a rather bearish stance when viewed with a long-term perspective. However, short-term traders who are making their assumptions on technical charts only may want to look at the 1.37000 level as an important inflection point for quick endeavors. If this mark is punctured higher, the USD/SGD could certainly be ready to test higher levels if the forex pair turns chaotic because of nervous trading conditions.
Speculatively, traders may want to look for further upside momentum to develop in the near term for the USD/SGD and have their take profit orders placed in their forex platforms to take advantage of choppy conditions. However, because the USD/SGD has also shown a great deal of bearish capability the past six months, traders should also be ready to find opportunities on reversals downward which will almost definitely be witnessed too. Traders should think about the coming days as a roller coaster ride they are unfamiliar with but have certain expectations about, because of past experience with swift turns which are certain to be experienced again.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.36810
Current Support: 1.36560
High Target: 1.37040
Low Target: 1.36270