The USD/SGD is within sight of an important short-term resistance level as of this writing. The USD/SGD is near the 1.34490 mark. On the 3rd of September a low of 1.33900 approximately was made by the USD/SGD after declining from a high of nearly 1.36560 on the 20th of August. While the recent bearish trend exhibited the past handful of weeks has been impressive, on the 7th of September the USD/SGD did demonstrate a slight reversal higher. Since the 7th a range of about 1.34444 and 1.34700 has proven to be rather consistent.
Interestingly, there is a rather large gap that exists between the 1.35000 and 1.34750 ratios. Technically, the USD/SGD saw a swift amount of selling velocity when the 1.35000 juncture was penetrated lower on the 27th of August, which makes the resistance levels of 1.34600 to 1.34700 crucial for sustaining the current price range. If the USD/SGD can maintain its current consolidation which has been displayed the last two days, this could set off a trigger which creates volatility when ignited.
From a risk/reward perspective, because there has been more traction via trading in the past two weeks within the lower realms of USD/SGD, traders may be inclined to believe this is where the Forex pair is likely to traverse again. While technical indicators may be indicating another leg down within the USD/SGD, the notion the USD also remains rather tentative in global Forex at this time is another piece of evidence which could spur sellers into activity.
Certainly the USD/SGD could suddenly surge higher. If the current resistance levels prove vulnerable and the 1.34600 mark evaporates, a swift kick upwards could be demonstrated by the pair as programmed trading tries to find equilibrium within the existing gap of value between 1.347500 and 1.35000. However, if resistance holds and the USD/SGD is able to begin testing nearby support, this price action could actually instigate further selling.
Speculators who are conservative could be enticed to be sellers of the USD/SGD by using slight reversals higher to open short positions. Leverage, if used cautiously, along with tight stop losses near existing resistance levels may open the door to a relatively comfortable short-term selling wager. If the USD/SGD is able to puncture the 1.34400 support level lower, additional downside price action could develop rapidly.
Singapore Dollar Short-Term Outlook
Current Resistance: 1.34600
Current Support: 1.34390
High Target: 1.34960
Low Target: 1.34100
