Trading in the USD/SGD has displayed a price range that speculators may want to consider if they feel they have a firm grasp on behavioral sentiment.
The USD/SGD as of this writing is within the middle of its one-week price range. The USD/SGD is near the 1.33000 ratios presently and its ability to correlate to the broad Forex market, while also having displayed a strong bearish trend up until the February U.S Federal Reserve dominated price action is attractive. As the USD/SGD is perched above yesterday’s highs after producing a slight reversal upwards, speculators may believe pursuing wagers on the currency pair is an opportunity.
The USD/SGD was clearly affected by a talk from the U.S. Federal Reserve of a potentially more hawkish interest rate stance in the past month and a half, but the past two weeks have caused a rethinking of this attitude. Financial market jitters caused by the corporate banking crisis have created a potential ‘safety net’ for trading houses that do not think the U.S. central bank can continue to hike interest rates aggressively. This has seemingly reenergized some selling within the USD/SGD and the downward technical slope the past couple of weeks is evident when a one-month chart is inspected.
Fragile Sentiment Remains a Danger for USD/SGD Traders
Certainly, nervous market conditions still exist within many financial houses, but if the broad markets continue to display some tranquility and the corporate banking sector crisis continues to evaporate slightly, the USD/SGD could find some traction via a better behavior sentiment outlook. There are no guarantees, but calmer waters and what appears to be a genuine need for the Singapore Dollar because of its position in the commodity trading world may prove to be intriguing for both technical and fundamental traders.
- Another potential risk event that looms for the USD/SGD is tomorrow’s U.S. Gross Domestic Product numbers.
- If the U.S. economic growth numbers are weaker than expected this could spur more selling of the USD/SGD.
The 1.33000 Ratio could be a Focal Point for Short Term Traders Today
Speculators and programmed trading systems both always seem to be keen on price ratios that represent psychological ‘even’ junctures. Today’s number for the USD/SGD seems to be 1.33000 which may present a rather interesting impetus for trading results.
A push below the 1.33000 level which can be sustained for a while may mean that additional bearish sentiment exists within the USD/SGD. A continued push above 1.33000 may mean financial houses remain slightly nervous. The next two days for the USD/SGD will likely be a reflection of the global market trading conditions. If risk appetite increases, the USD/SGD may find that it continues to ebb slightly lower.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.33055
Current Support: 1.32965
High Target: 1.33450
Low Target: 1.32400
Ready to trade our Forex daily analysis and predictions? Here are the best Forex brokers to choose from.
