- The USD/SGD is near 1.34040 as of this writing. On last Friday the USD/SGD was trading near a low around the 1.32825 mark and near intriguing support ratios.
- However, the absence of U.S financial institutions from the trading landscape yesterday because of a banking holiday combined with the momentum higher generated has now placed the USD/SGD in a rather turbulent perspective for traders.
Speculators who have been carrying bearish thoughts regarding the USD/SGD based on outlook will have to consider timeframes carefully. The ability of the USD/SGD price to move higher the past day must be looked upon suspiciously, but traders should be careful about their coming decisions regarding where the currency pair will go next. The USD/SGD is suddenly challenging mid-December values.
USD/SGD and Existing Sentiment are Important
Day traders may be confused regarding the recent bullish movement of the USD/SGD higher and they are likely not alone. Current risk appetite in the global markets remains rather strong. U.S equities remain near highs and the return of U.S financial institutions today may change the tide in recent Forex conditions globally. Traders today should be careful because outlooks may still be that the USD should be weaker over the mid-term. However, this doesn’t offer short-term traders any guarantees.
Looking for a lower move to emerge in the USD/SGD and betting against the recent trend higher may seem logical, but the old saying that the trend is your friend has been repeated for many years. While the short-term may look attractive to bet against the higher move in the USD/SGD, it could prove to be dangerous in the near-term. The 1.34000 level and above may look overbought, but the market unfortunately always is correct. Timeframes and cautious wagering considerations need to be examined.
Near-Term and the USD/SGD Volatility
The USD/SGD has jumped higher in a rapid fashion early today and traders may feel tempted to bet against the surge. However the move higher should be monitored. Tomorrow Retail Sales numbers will come from the U.S, but these numbers are unlikely to be a huge impetus. It appears that short-term sentiment is hitting Forex and the USD/SGD which is causing the reversal higher. The question is how long will the momentum remain.
- Traders need to be cautious; if they are looking for downside price action to emerge in the USD/SGD they should not be overly ambitious because the move higher in the currency pair has been strong.
- If the USD/SGD remains above the 1.34000 level this may spark wagers for bearish momentum to develop, but traders should be careful. If the USD/SGD breaks above the 1.34100 this would be equally suspicious.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.34075
Current Support: 1.33990
High Target: 1.34150
Low Target: 1.33790
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