The USD/SGD continues to vanquish support levels. Bearish speculators who have been lucky enough to pursue the downward momentum and profit from it should seriously consider cashing out some of their winnings. However, the trend remains in favor of more selling pressure, but traders who want to short the USD/SGD will need to look at five-year charts to navigate their next targets, perhaps.
Values from April of 2018 are seriously being contested at the moment by the USD/SGD. Yes, after touching close to the 1.31630 mark a reversal higher did take place, but with resistance levels apparently only slightly above the 1.32000 juncture, speculators who have been wagering on bearish momentum need to take a moment and thank their lucky trading stars. The USD/SGD has been demonstrating a solid trend downwards, and if it is able to sustain its current pace mid-term, it seems likely the Forex pair could challenge lower values in the months to come.
Short-term speculators need to consider using solid risk management. Traders cannot lock a selling position into place and expect it to simply perform as they wish without stop loss and take profit orders working while they conduct trades they want to last only a few hours. The USD/SGD has proven capable of reversals higher. Some speculators may want to engage in buying positions based on short-term technical perspectives that show support is being tested and will not bend, producing small cyclical buying advantages which can produce gains.
However, traders need to continue to ask where the best risk/reward scenarios can develop short term. Price action from yesterday and the previous week - in fact, since early March 2020 - continues to highlight a bearish trend. Currently, the USD/SGD is traversing the 1.31850 levels and speculators should contemplate selling the Forex pair if it incrementally climbs and begins to test resistance junctures again.
Global risk appetite may appear rather mixed today and tomorrow, but as financial houses get back into the swing of investing in the coming days, they may be inclined to stay optimistic. The USD/SGD has personified a definite bearish trend and until proven otherwise, speculators should continue to consider selling the Forex pair when the opportunity arrives via their technical insights.
Singapore Dollar Short-Term Outlook:
- Current Resistance: 1.32060
- Current Support: 1.31690
- High Target: 1.32200
- Low Target: 1.31270
