The USD/SGD is trading near the 1.34800 level as of this writing as its value range fights displays quick price velocity. Day traders who are accustomed to quick hitting market endeavors may enjoy the current battle being demonstrated by support and resistance levels within the USD/SGD.
The 1.35000 mark remains tantalizing close, but it should also be noted the forex pair did manage a low of nearly 1.34370 yesterday. Choppy conditions are dominating the trading landscape and it is advised that speculators use their risk management skills carefully. The ability to react quickly to technical support and resistance is important, but so is being able to grasp the goal of the trade which is being set forth. In other words solid price targets and time parameters must be considered before igniting a trade..
Current resistance near the 1.34850 to 1.34880 looks to be important, today’s early high near the 1.34880 mark tested resistance from two days ago. On the 22nd of October the USD/SGD did touch the 1.34980 ratios and on the 18th the forex pair did reach a high of nearly 1.35280. Although the USD/SGD has been displaying a rather incremental bearish trend over the past month, if the 1.35000 resistance mark were to be challenged it could produce a lot of nervous sentiment.
The question short term technically is if the current exhibition of upwards movement will prove short lived or if it will become a durable reversal. Speculators may be inclined to believe the USD/SGD actually is overbought and be tempted to look for downside within the current value range. If resistance manages to maintain the 1.34900 ratio as a barrier, selling from this general area could prove to be a good wager.
Trading has been choppy the past week and half in the USD/SGD. Traders who do not like quick hitting trades are encouraged to use a conservative amount of leverage and perhaps widen their stop loss orders to allow for the forex pair to move towards their price targets. Cautious traders may want to be sellers only when the USD/SGD is near or above the 1.34820 level, while then hoping for a reversal lower to find profits if support levels are then tested abruptly.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.34850
Current Support: 1.34730
High Target: 1.34990
Low Target: 1.34510
