The USD/SGD has reversed lower and has again demonstrated that its bearish trend remains a force. Early last week, the Singapore dollar did see a bullish trend as it lost value to the USD and traded near a high of 1.33970 for a short duration. However, since last Monday, the USD/SGD has seen a profound amount of selling and the Forex pair is within a vital testing ground as long-term support ratios are being contemplated by speculators.
Trading volumes will remain light this week with many financial institutions absent from the playing field as holidays are enjoyed. However, traders should take a look at the most recent five-day technical chart to see evidence that the bearish trend in the USD/SGD remains strong. Yes, speculators can certainly look for reversals higher as key support levels are tested, but if they participate in this manner they should also have working take profit orders programmed. Although the USD/SGD showed it can climb higher rapidly, the overwhelming momentum still appears to be reversals lower with a tendency to brush aside support levels.
USD/SGD support near the 1.32680 to 1.32620 junctures may prove to be important near term. A lack of big trading volumes remains a concern and could lead to choppy waters this week, but if these support ratios prove vulnerable, another test of the 1.32470 mark could be next. On the 17th of December, this lower support level proved strong, but if and when it is hit again the ratio may prove to be a critical inflection point.
Short-term traders need to remain aware that the USD/SGD could produce quick whipsaw movements within a tight value range, but when choosing a direction to pursue, selling should remain an attractive option. Cautious traders can look for slight reversals higher to sell the USD/SGD with limit orders.
Pursuing bearish momentum in the USD/SGD remains a logical decision for speculators. The long-term trend of the Forex pair is approaching important support levels, and if current ratios near the 1.32620 mark prove vulnerable, the USD/SGD may seek lower terrain near term. If a trader can be a seller near the 1.32760 to 1.32810 junctures, it may prove a worthwhile endeavor.
Singapore Dollar Short-Term Outlook:
- Current Resistance: 1.32850
- Current Support: 1.32620
- High Target: 1.33080
- Low Target: 1.32470
