The upwards movement of the USD/SGD cannot be denied and the higher realms of its price range remain dominant in the short term. The USD/SGD did trade above the 1.36000 level yesterday, which came within sight of late July highs. Speculators who carry bearish sentiment would certainly be wagering against the mid-term trend. Support levels have often proven adequate in the past month and have frequently sparked reversals upwards.
However, and perhaps you anticipated this word coming, the USD/SGD while traversing these higher levels may be showing signs of having worn out its welcome within these price vicinities. Technically, there is no doubt an argument can be made for other cycles higher which will again flirt with the 1.36000 juncture and potentially above. Yet, from a risk/reward perspective - and this can be argued technically too - there appears to be more opportunity for downside action than upside movement.
Yes, short-term speculators will certainly be affected by the natural give-and-take of the USD/SGD, but for traders with the stomach to take risks, use a conservative amount of leverage and withstand slight price accumulation higher, wagering with a selling position may prove to be worthwhile. As of this writing, the USD/SGD is near the 1.35750 and, if a gust of headwinds starts to prove durable, the Forex pair is near important short-term support that could prove vulnerable.
If the 1.35650 to 1.35600 junctures start to show distress and values can be sustained near these ratios, additional selling pressure may mount within the USD/SGD. Technically, if resistance holds near the current barometers of 1.35840 to 1.35880, this may prove a signal. Additionally, if the 1.35800 is not seriously tested in the short term, it will also be an indicator that bearish selling may be starting to have an effect on the USD/SGD.
Clearly, it is a speculative notion to wager against the bullish mid-term trend. However, the bullish price action may prove that its days in the sun are coming to an end, and the bearish sentiment which has been strong within the USD/SGD for long periods of time the past year may be ready to re-emerge. Traders who are selling are cautioned not to be overly ambitious and use take-profit orders when winning positions are achieved. The short term could prove to be an opportunity for shorting the USD/SGD.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.35890
Current Support: 1.35640
High Target: 1.36100
Low Target: 1.35400
