The USD/SGD has powered to new highs in early trading this morning, this as the upwards momentum being generated brushes resistance away with relative ease.
- The climb higher in the USD/SGD has continued this morning and values are being sustained.
- The currency pair is traversing the 1.36525 vicinity as of this writing. On Wednesday of last week the USD/SGD was near 1.34400 before performing a swift reversal to the 1.35490 mark, since achieving this height the currency pair has taken on a look technically of a staircase.
- Bullish traders who have pursued the momentum have likely profited as sentiment has shifted.
The reason behind this upwards trajectory is clearly the stronger than anticipated U.S economic data via inflation reports, but yesterday’s better than expected Retail Sales numbers sparked additional buying. The U.S Federal Reserve had hopes of cutting interest rates in May or June of this year, and these visions of becoming more dovish have been swept aside. The USD/SGD is reacting with buying and is now touching values last seen in early November. Higher October values are in sight.
Resistance Levels are Vulnerable in the USD/SGD
While the CPI report last week from the U.S showed inflation is stubborn, yesterday’s consumer spending report shows Americans are still opening up their wallets and spending. Economists have been left scratching their heads along with Federal Reserve FOMC Members. The Singapore Dollar has mirrored other major currencies as it has lost value since the second week of March against the USD.
This morning’s economic data from China was mixed. Singapore has strong financial ties with China and the weaker than expected Industrial Production data today likely caused some concerns. However, China did show improved GDP results. The USD/SGD works as a lynchpin in financial transactions because of the amount of shipping and commercial enterprises Singapore does throughout Asia and globally. Resistance levels have been penetrated with ease recently and higher values have been sustained. China’s CNY is not showing a great deal of strength either.
Speculative Highs and Notions about Bullish Behavior Continuing
The price of the USD/SGD at this moment while technically high over the mid-term has seen loftier values. In October of 2023 the currency pair traversed a range that tested the 1.37000 levels rather steadily, yes, there were outliers, but the current heights of the USD/SGD are not unprecedented.
- The U.S is not releasing any major economic data today, but Fed officials will be speaking – but no surprises are expected from their mouths.
- The current values of the USD/SGD will likely see fast trading, but if the currency pair remains above the 1.36500 level this means more bullish sentiment is lingering.
- Traders should remain realistic and not get overly ambitious. The USD/SGD can reverse lower, and at some point financial institutions will believe equilibrium has been found.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.36620
Current Support: 1.36490
High Target: 1.36710
Low Target: 1.36090
Ready to trade our Forex daily forecast? We’ve shortlisted the best FX trading platform in the industry for you.