The USD/SGD is trading near the 1.32660 ratio as of this writing; this is a high for the week in the currency pair. However before traders start to believe an overwhelming trend upwards has developed in the USD/SGD, they should take a moment to consider the reality that Forex markets remain thinly traded. Holiday markets are in full effect and many large players will stay away from transactions until early next week.
On Thursday of last week the USD/SGD traded at a low of nearly 1.31600, the last time this value had been seen was in the middle of July 2023. USD/SGD traders are some of the most sophisticated global participants in foreign exchange.
The fact that the currency pair managed to touch depths from the middle of July shows that financial institutions participating in the USD/SGD were likely ahead of the trading curve regarding bearish sentiment. Most other major currency pairs are still battling early August 2023 values, this as the USD has grown weaker over the past couple of months regarding sentiment.
USD/SGD Large Speculative Dynamics
Simply put large players in the USD/SGD were likely anticipating the U.S Federal Reserve would become more dovish in the middle of December. Anticipating the change of rhetoric to monetary policy may have helped fuel the selloff in the USD/SGD which took on solid price velocity starting in the middle of October. While the SGD/USD certainly has mirrored major currency pairs, the notion that price action in the pair was a ‘trend setter’ should be considered.
The drift upwards the past couple of days of trading in the USD/SGD should be taken seriously – for about five seconds – and then thoughts should turn to near-term consideration for the remainder of the week and afterwards. Technical traders should not only look at short-term charts, but they need to look at six month and one year perspectives too.
USD/SGD has Plenty of Support in Sight
The near-term will likely continue to produce choppy results in the USD/SGD until early next week, but as full volume develops again in the currency pair ‘real’ insights will begin to flourish. The outlook for the U.S Federal Reserve is now dovish for 2024. The question is if the USD/SGD has anticipated the entire move of the U.S Fed to come, or if they have only bet on some of the outcome? The bearish trend of the USD/SGD has plenty of support within sight below when taking a look at long-term charts, but the currency pair has traded lower in the past.
Top Forex Brokers
- Short-term conditions in the USD/SGD will likely remain choppy and traders should use risk management wisely.
- Traders anticipating further downside price action in the USD/SGD should be careful in the near-term. Quick hitting wagers will likely be the flavor of the day until full market action develops next week.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.32800
Current Support: 1.32415
High Target: 1.32325
Low Target: 1.32130
Ready to trade our daily Forex forecast? Here’s a list of some of the best regulated forex brokers to check out.