The USD/SGD continues to confront important support levels, but the battle to maintain bearish momentum has not been easy.
The USD/SGD is near important support levels once again in early trading today. The 1.32000 is within sight and may be a target which aggressive speculators are aiming towards. However, the USD/SGD has had to fight to maintain its bearish trading stance. Certainly, the Forex pair is within a strong downward trend, one that is trading slightly above lower values not seen since 2018. Yet, the USD/SGD has also produced rather turbulent reversals higher the past week of trading.
The swift trading lower early today did break through the 1.32000 mark briefly. Upon hitting near the 1.31950 level the USD/SGD did move higher, but importantly, it did not hit earlier highs upon reversing, which were seen when the trading day opened in earnest in Asia. This may signal that the USD/SGD could see another test of support junctures below.
The 1.32000 level remains crucial within the current trading environment. Until this value is broken and the price is sustained below 1.32000, it will remain a solid guide post for speculators to aim for as a take-profit indicator. The USD/SGD may be within a strong bearish trend, but this level has also proven capable of spurring on rather strong moves higher. In fact, the 1.32000 level has proven difficult to penetrate.
The 1.32000 juncture was punctured in late December and early January, but since then the USD/SGD has actually created plenty of trading above this crucial support level. This allows for the question regarding the possibility that the 1.32100 to 1.32050 junctures may actually be a legitimate buying terrain for the Forex pair.
Speculators face a tough decision. The USD/SGD has certainly been fighting near the 1.32000 level on a rather consistent basis, but until this morning’s early move below the mark, the last time trading near the 1.31950 level was seen was January the 7th.
Traders may want to consider momentum tactics as a method to wager on the USD/SGD. However, the Forex pair is near a crucial support level. Until the USD/SGD proves it can sustain values below the 1.32000 level, speculators may be tempted to buy near current support levels and look for moves higher and be ready to cash out profits with quick-hitting take-profit orders.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.32240
Current Support: 1.32050
High Target: 1.32540
Low Target: 1.31900