The USD/SGD has seen a bullish surge emerge the past week and it has gained velocity today as important mid-term resistance levels come into sight.
The USD/SGD is trading near the 1.35200 level as of this writing as technical and safe haven factors are seemingly combining to create a bullish environment short term. The USD/SGD has seen an incremental climb in value the past week of trading, but upwards momentum has gained velocity the past couple of trading days as financial institutions are perhaps growing cautious regarding their short-term outlooks.
The 1.34500 price range looked rather steady after a burst higher early on the 16th of September, but after achieving a rather comfortable range for a day, late on the 17th the USD/SGD surged higher again. In early trading this morning, the important 1.35000 mark was burst upwards and the USD/SGD has shown little inclination to try and reverse lower. Technically, the Forex pair is suddenly challenging values last seen in late August. Fundamentally nervous winds are flaring which may also inspire speculative bullish behavior.
U.S equities via the future markets are demonstrating that a sharp selloff may occur today. The notion that equity indices globally may be in for a rough trading cycle has been growing among some analysts and, if financial institutions go into a safe haven mode, this could spur on additional buying of the USD/SGD. On the 27th of August, the USD/SGD was trading near a high of 1.35560, and it should be noted on the 19th of August the Forex pair traversed the 1.36500 terrain.
Speculators who want to be buyers should not be too greedy. While targeting take profit spots it may prove wise to cash out winning positions as they occur and not wait for a massive move to potentially be generated. Using a limited amount of leverage and implementing a tactic to raise your stop losses if the USD/SGD is moving in a favorable direction is a possibility. However, in order to use this mode of trading, a speculator needs to be paying strict attention to the USD/SGD at all times and be agile.
Certainly the USD/SGD could traverse lower and a bearish reversal could be exhibited. However, the 1.35000 level may not be seen again today if market conditions remain nervous. Traders who want to be buyers may want to use slight reversals lower to enter a speculative bullish position and seek higher price action.
Singapore Dollar Short-Term Outlook
Current Resistance: 1.33250
Current Support: 1.35150
High Target: 1.35360
Low Target: 1.34910