The USD/SGD is around the 1.36520 mark as of this writing. This lower level which has been achieved with a bearish trend since Friday has brought the currency pair within sight of important near-term values, which if proven vulnerable could set off another wave of selling. Before speculators all pile into selling positions, it would be wise to acknowledge that plenty of economic data will be coming from the U.S. today and the remainder of the week.
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On Friday the USD/SGD was trading near a high of nearly 1.37185, intriguingly the high made the day before in the Forex pair was in the vicinity of 1.37350, this high came within sight of apex marks made in the first week of October. However, while speaking about highs, what speculators should have picked up on is the technical insight the USD/SGD has actually been selling off. Yes, the movement lower has been achieved with choppy results, but the value the USD/SGD is now trading is within a realm that traders may believe lower targets are a possibility.
The USD/SGD 1.36400 Support Level Could be Crucial
While bearish speculators may be transfixed by the very close 1.36500 level now in sight, if this mark falls the next target that could prove more important is the 1.36400 value. If this lower support level were proven to be unstable, financial institutions may act upon the optimistic wave that sellers are trying to generate. But obviously, there are no guarantees and a look at the results of the past month of trading has shown when these two support levels have been tested, solid higher reversals have taken place. So the question becomes is now the start of a stronger move lower?
- Risk-averse conditions remain in plain sight and global markets are nervous. Yesterday’s move higher in U.S equities was a good sign, but indices remain near lows and are nervous.
- The U.S. Federal Reserve will release its FOMC Statement and Federal Funds Rate tomorrow. On Friday the U.S jobs numbers will be published.
Risk Adverse Conditions Could Still Have an Effect
Traders should remain rather cautious regarding their USD/SGD wagers the next day and a half. Plenty of economic data and rhetoric will be heard by late Wednesday night for USD/SGD traders and it is likely the Forex market will react with an additional burst of volatility. If conditions can remain calm in the global markets there is a suspicion we may have more tests of support levels in the USD/SGD, but traders need to practice risk management and use conservative leverage in case sudden news developments turn chaotic.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.36620
Current Support: 1.36500
High Target: 1.36985
Low Target: 1.36190
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