On the 1st of June, the USD/SGD was trading near the 1.31880 vicinity, and bearish speculators who have been trying to wager on reversals lower back to these ‘golden days’ have likely been injured within their trading accounts. As of this morning, the USD/SGD is trading almost comfortably above the 1.35000 value, and technical resistance via mid-term charts shows a high of approximately 1.35300 on the 9th of March.
While it is tempting to be skeptical of the bullish momentum exhibited by the USD/SGD the past month, there is no denying its power and speculating against the upwards trend has proven costly. Yes, if a long-term chart is inspected, it is clear the USD/SGD actually is still within the lower part of its value range. And this complicates all consideration regarding the coming direction for the USD/SGD from a speculative viewpoint.
The USD/SGD is trading within an important range and, if current resistance levels prove vulnerable, that may mean further bullish traction will be seen. Upside momentum has certainly been kind to speculators who have been buying near support and looking for quick-hitting trades upward the past month. And traders cannot be blamed for continuing to pursue the trend in the short term until it runs out of power technically. Current resistance near the 1.35300 to 1.35690 junctures could prove to be important.
However, if bearish speculators are still alive and participating in the USD/SGD, they may want to continue to foster the sentiment that the Forex pair may be running into important resistance any moment. It is quite dangerous to wager against an existing trend, particularly when it has been rather robust like the USD/SGD has been the past month, but speculative wagers seeking downside momentum can be justified if solid risk management is being used.
Selling the USD/SGD within its current price range must be done cautiously. Stop losses need to be adequate, but shorting the USD/SGD using nearby technical resistance and targeting values below may prove to be worthwhile. As an added incentive, bearish speculators may look at the lows from only two days ago and believe they are attractive. On the 6th of June, the USD/SGD was trading near a low of 1.34250 and this is not a distant memory.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.35320
Current Support: 1.34930
High Target: 1.35690
Low Target: 1.34340
