The USD/SGD has continued to deliver short-term volatility and speculators need to carefully gauge their timeframes and goals when taking positions. The USD/SGD remains within the midst of its long-term bearish trend, but support levels the past five days of trading have exhibited strong reversals higher, which may be proving painful for traders who are over-leveraged and pursuing selling positions.
In early trading this morning the USD/SGD tested highs near the 1.33000 level, but the Forex pair was not able to sustain values above this mark. If the USD/SGD is able to maintain current resistance levels near the 1.32960 mark it may be a signal, which reinforces the notion that selling remains the practical choice regarding outlook for direction ultimately.
However, the short term has seen swift changes in direction and the size of the moves have been rather big, taking into account the USD/SGD’s ability most of the time to deliver rather polite value bands. Speculators need to be cautious particularly if they are pursuing short-term trades and tight stop losses. Traders with a slightly longer timeframes, using conservative leverage and wider stop losses may be resting more comfortably.
The USD/SGD has shown the ability to challenge support levels and prove them vulnerable the past week, but the past few days of trading have also produced incrementally higher support ratios which is alarming for speculators with short term trading perspectives. If current support near the 1.32750 level proves vulnerable bearish traders will likely have their eyes on the 1.32540 juncture. And it is this bearish ratio for the USD/SGD traders need to pay strict attention. If this lower support level gets challenged it will be a signal the forex pair has the capability of reasserting its downward momentum.
While the USD/SGD certainly remains within the safe depths of its long term bearish trend, the short term has proven difficult. Short term speculators who are quick and able to use limit orders after getting their positions established are encouraged to use take profit and stop loss orders to effectively make sure they do not get ambushed by sudden volatility. Within the current values of the USD/SGD the pair remains an attractive sell, but short term conditions need to be considered carefully and looking for fast upside action if current support levels hold may also prove a nice speculative wager.
Singapore Dollar Short-Term Outlook:
- Current Resistance: 1.32960
- Current Support: 1.32750
- High Target: 1.33120
- Low Target: 1.32540
