The USD/SGD is near the 1.27950 mark as of this writing with a rather wide spread being seen while light trading volumes still shadow Forex as the holiday season concludes and large traders return.
The USD/SGD has shown a strong ability to move lower since the 21st of November when the 1.31010 ratio was challenged. The USD/SGD at this time last week was around 1.28450, as of this morning the currency pair is traversing an even lower mark and near 1.27950.
The ability of the USD/SGD to crash below the 1.28000 will not surprise experienced traders. The USD/SGD has been flirting with lower realms over the long-term and its ability to start recapturing terrain seen in September of 2025 is not a distant memory. However, because light trading still pervades Forex and will continue to do so for a few more days, results will be looked at with distrust by some speculators.
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USD/SGD Correlation and Leading Indicator
The USD took on a weaker tone yesterday and there is a lot of noise regarding why this is taking place. The intervention in Venezuela is certainly making news, but day traders need to disregard a lot of what they are hearing as temporary noise in a marketplace that is still waiting for full volume to return. The ability of the USD/SGD to move lower and other major currencies to improve their value against the USD has in a large measure been taking place before the Federal Reserve’s last FOMC meeting.
The move lower in the USD/SGD and push beneath 1.28000 is intriguing and should be watched today and tomorrow. If the USD/SGD maintains its lower stance over the near-term this could be a signal that large players believe additional weak USD impetus is going to be a factor. The USD/SGD was trading around the 1.27200 to 1.28000 vicinities with outliers in June throughout September of 2025 with regularity. However, speculators should not get overly ambitious.
Near-Term Volumes and Wagers
Day traders who are momentum traders need to be careful today and tomorrow. While it might be tempting to try and ride the trajectory of the USD/SGD lower, abrupt changes in direction could happen when volumes increase over the coming days which will certainly see a reaction to the strong velocity downwards that has occurred.
- The past couple of days in the USD/SGD are a potential signal that downside may continue, but financial institutions may react nervously to the lower ratios produced the past couple of days.
- As market volumes grow over the next two to three days in Forex this could cause volatility.
- Risk management tactics such as stop losses and take profits should be used because fast price fluctuations are a danger.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.28010
Current Support: 1.27910
High Target: 1.28125
Low Target: 1.27820
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