The USD/SGD is trading near the 1.32925 ratio as of this writing. The USD/SGD has produced a range around 1.33200 and 1.32650 in the past day of trading. Before going into the weekend last Friday the USD/SGD hit speculators with vicious volatility as it hit a high of nearly 1.33530 and then dropped to around 1.32520 in less than two hours. This price action happened as the U.S jobs numbers were published and caused bedlam in lightly traded Forex markets.
Trading in the USD/SGD produced a calmer range for speculators and early trading this morning has been rather sedate. The current price of the USD/SGD is essentially trading near price values it lingered around before the U.S jobs numbers last Friday. It appears financial institutions are starting to create equilibrium and the current range of the USD/SGD may find some consolidation today which could allow speculators to chase support and resistance perspective.
USD/SGD and Inflation Data on the Horizon
Full trading volumes in the USD/SGD are now being seen, and it is likely today and tomorrow will likely continue to be dominated by prevailing behavioral sentiment as outlooks are debated depending on the timeframes positions must be executed. Day traders should be aware that on Thursday the U.S will publish its Consumer Price Index data and the inflation statistics will definitely cause the USD/SGD to move.
Until the inflation data is published later this week USD/SGD traders should look at the existing price range over the past handful of days minus the volatility that occurred when the U.S jobs numbers were produced. There is a price band that was being traded before the Non-Farm Employment Change data which has seemingly held. The ratio of 1.33000 may prove to be important psychologically in the short term. If this level holds as resistance it might indicate financial institutions believe the USD/SGD has further room to roam lower.
Current Price Level of USD/SGD is a Key
The current price level of the USD/SGD appears technically to be important and a look at a one-month chart reflects the notion that the 1.33000 has been a magnate since the 14th of December. Intriguingly this was the day after the U.S Federal Reserve delivered softer monetary policy rhetoric and the USD/SGD fell from highs which were touching the 1.34200 mark beforehand. The ability of the USD/SGD to maintain its lower price realm the past handful of weeks as it awaits the U.S. CPI numbers this Thursday is likely to prove critical.
- Traders looking for downside momentum in the short term should not be overly ambitious. Quick hitting targets should include take profit and stop loss orders in the USD/SGD.
- If a trader is looking for upside price action in the USD/SGD they should be careful, because unless U.S inflation data comes in surprisingly high, current sentiment will likely continue to create reversals lower when resistance levels are tested.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.32990
Current Support: 1.32900
High Target: 1.33195
Low Target: 1.32760
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