The past week of trading has seen the USD/SGD traverse lower. After trading above the 1.34000 since the first week of March until the end of the second week in April, the USD/SGD has developed a strong surge down. The current momentum of the USD/SGD has taken the Forex pair back into bearish territory and traders now have curious technical support levels which will have to be contemplated.
As of this writing, the USD/SGD is hovering near the 1.32640 level, and important junctures below of 1.32560 to 1.32440 are likely becoming the focus for speculators with a taste of bearish sentiment. The USD/SGD has certainly been trading within a higher value band the past month-and-a-half, but since last week has produced an incremental and steady move lower. While experienced traders often tend to look for reversals to emerge after big moves like the one which has happened, they also know it is sometimes foolhardy to step in front of the trend.
On the 25th of February, the USD/SGD was trading near 1.31600, which came within sight of lows made in early January. Today’s price action in the Forex pair has seen more downward pressure and the current value of the USD/SGD has again entered into a technical range which may be showing signs that it will again challenge lower values.
Bearish speculators may have been rewarded the past week of trading, if they managed to ride some of the wave lower within the USD/SGD. Traders are encouraged to cash in some of their profits if they are staring them in the face via their trading platforms. If a speculator wants to re-enter the USD/SGD with additional selling positions, they may want to wait for slight reversals higher while trying to capture value below, which aims for existing support levels.
The USD/SGD has moved with a rapid pace the past week and support levels have been brushed aside in a manner which signals that the push lower may aim for values which have produced consolidation in the mid-term. Traders looking for bearish momentum to extend short term certainly have logical reasons technically to believe that the 1.32440 to 1.32230 values could produce a new battleground if it is tested.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.32840
Current Support: 1.32500
High Target: 1.33110
Low Target: 1.32230
