The USD/SGD continues to produce choppy results for short-term speculators and the Forex pair’s recent run higher raises questions.
The USD/SGD continues to create choppy trading and the past two days have seen a bullish trend emerge. After breaking below the 1.34000 mark only two days ago, a wave of risk-averse sentiment has erupted again within global Forex markets as financial institutions confront concerns about long-term investment strategies.
Since February 25th, the USD/SGD has gone from nearly 1.31660 towards its higher values it is trading today. Speculators who have been pursuing bearish sentiment have been tested the past month as conditions remains turbulent. There have been technical signs that downward momentum has the ability to be displayed, but a substantial reemergence of the long-term bearish trend has been hard to sustain.
After challenging resistance early this morning near the 1.34750 level twice, the USD/SGD has seen a reversal lower. For traders who believe the Singapore dollar needs to eventually begin its downward trajectory once again, the higher junctures may appear to be a technical selling ground with opportunity if they believe this juncture will prove adequate. However, remaining stubborn about the perceived direction of the USD/SGD has proven difficult and traders who are selling should have stop losses in place near the 1.34800 mark.
Speculators who are concerned technically the USD/SGD has proven to be bullish and believe the Forex pair will continue to challenge highs reached in the second week of March should also watch the 1.34750 level carefully. While this level has caused two reversals lower this morning, if the juncture is penetrated higher and sees a sustained amount of trading above, higher altitudes near the 1.34840 and up might become a focus.
On the 8th and 9th of March, the USD/SGD traded above the 1.35000 level for a short duration. Quick traders who are looking for more upside momentum to emerge if risk-averse conditions continue to be demonstrated in Asian markets may feel that more bullish activity is a legitimate speculative position.
Global markets do appear to be nervous short term, but this may also produce an opportunity for traders with capable fortitude to actually be sellers of the USD/SGD near its current price levels. If the USD/SGD does not show a sustained ability to trade above the 1.34700 juncture, selling the USD/SGD may prove to be a worthwhile speculative trade.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.34710
Current Support: 1.34500
High Target: 1.34840
Low Target: 1.34380