The USD/SGD price at this moment is near the 1.31350 ratios as it continues to traverse within its lower realms. Yesterday’s trading saw lightning strike selling momentarily take the USD/SGD down to the 1.31275 realms, but a reversal higher quickly took hold. However, the USD/SGD remains seemingly locked into a long-term lower price range, after having trended in a bearish pattern since the 28th of September 2022 when the currency pair nearly hit the 1.45000 level.
Yesterday’s U.S retail sales came in significantly lower than expected, this is likely being translated by financial houses that U.S consumers remain conservative regarding their spending. Lower retail sales figures likely spurred on the notion the U.S economy is acting in a recessionary manner and is another piece of evidence that could make the U.S. Federal Reserve less aggressive regarding interest rate policy. The spike lower in the USD/SGD can certainly be regarded as a reaction that considers a more dovish U.S. central bank outlook.
Quick Bounce Higher in USD/SGD a Certain Technical Reaction
Day traders looking at the results of the USD/SGD the past week can clearly see the currency pair has been able to break important support levels and sustain lower values. Certainly, the USD/SGD has reacted to some lower ratios with reversals higher as Forex works within its natural cycles, but the trend downward should be respected. But questions about the capability of the USD/SGD being able to continue moving to lower depths is legitimate, at some point, it is fair to wonder if the currency pair will sustain reversals higher.
- The last time the USD/SGD sustained its current price levels were in May and June of 2021.
- From December 2020 to June 2022 the 1.32000 juncture of the USD/SGD acted as an important price ratio, often working as support.
5-Year Charts are needed to Consider Potential Lower Moves for the USD/SGD
Long-term charts show the last time the USD/SGD traded below the 1.32000 ratios in a sustained manner was around January until June of 2018. Bearish speculators may be considering lower realms currently in the USD/SGD and they may be correct, but they should be careful.
Conservative speculators may want to wait for slight reversals higher to ignite their selling positions. Yesterday’s weak retail sales numbers from the U.S. certainly add to the perspective the U.S. Federal Reserve will have to take a step back from their aggressive raising of interest rates, but the USD/SGD velocity downwards has been rather fast the past week. Aiming for lower ratios in the USD/SGD should be done with realistic targets that have conservative targets below. The near-term price range may linger.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.32490
Current Support: 1.32120
High Target: 1.32640
Low Target: 1.31960
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