The USD/SGD has turned in a mixed bag of results the last day of trading, and the nervous behavioral sentiment in Forex may provide speculators with intriguing short-term technical opportunities.
The USD/SGD is near the 1.34600 ratios as of this writing. Yesterday’s high in the USD/SGD was around the 1.35000 mark which then led to a strong reversal lower. Twelve hours later the USD/SGD touched lows near the 1.33935 ratios and since then the currency pair has incrementally climbed higher.
Speculators who like to trade in choppy waters where values are fluctuating and results are mixed might find the USD/SGD an opportunistic currency pair in the near term if they believe strongly in their technical charts. The highs and lows of yesterday’s can be interpreted in a fundamental way too via the U.S ISM PMI Manufacturing Index reports. While the Purchasing Managers Index numbers came in weaker, the prices being paid by the purchasing managers showed inflationary pressures.
U.S. economic Data is Unclear and Nervous Sentiment is creating USD/SGD Turbulence
Economic data in the U.S. continues to deliver reports suggesting inflation may remain more stubborn than anticipated by many financial analysts, while concerns about the prospects for growth are cloudy. The USD/SGD and other major Forex pairs are certainly being affected by these worries which makes predicting what will happen with U.S. Federal Reserve monetary policy difficult.
- U.S. weekly Unemployment Claims will be reported today, tomorrow the ISM Services PMI results will be published. The results will affect the USD/SGD short term.
- Mixed outcomes regarding U.S. economic data is likely to continue to cause additional choppy results in the USD/SGD today and tomorrow, bringing support and resistance ratios into focus for traders.
The USD/SGD is Hovering near the 1.34600 Ratio and the Numbers are Intriguing
Trading in the USD/SGD has demonstrated a rather interesting tendency to trade near important psychological price levels the past day. This is an indication that technical trading is creating momentum in the short term as speculators likely rely on value levels to signal which direction the USD/SGD can move next with more emphasis. If the USD/SGD shows it can trade below the 1.34600 mark today and challenge the 1.34550 to 1.34500 levels this may show some bearish sentiment exists and is being targeted.
However, today and tomorrow are likely to remain dominated by nervous sentiment as more U.S. data is anticipated next week via the Non-Farm Employment Change statistics which are likely to create a stronger impetus regarding a more pronounced direction. If trading is sustained above the 1.34600 today and challenges of the 1.34700 mark are produced, traders may aim for additional upside in the near term with targets yesterday’s values seen before the sudden reversal lower.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.34699
Current Support: 1.34435
High Target: 1.34896
Low Target: 1.34130
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