Technical traders still looking for short-term clues regarding the ability of the USD/SGD to move lower could look at marks achieved at the end of January to gain perspective. As of this writing the USD/SGD is near the 1.26228 ratio and has seen another solid round of selling come into Forex, this as USD centric weakness remains a story. The USD/SGD did trade near the 1.25910 mark on the 28th of January.
However, traders who are aware of the fact the USD/SGD is within a realm it has not truly seen in a sustained manner since 2014 may be looking at the lows being created rather skeptically. But should they be? The USD/SGD is challenging levels seen only two weeks ago, and financial institutions continue to signal they are not exactly in the mood to consider a stronger USD outlook. Yesterday’s weaker than anticipated Retail Sales from the U.S may have added to the sentiment that selling the USD/SGD is the right thing to do.
U.S Jobless Data Today on the Schedule
Because of last week’s limited U.S government shutdown the Non-Farm Employment Change results will be published today. The delay in the publication of the jobs numbers adds a bit of spice today for USD/SGD traders. Although it must be added that Friday’s coming CPI reports seem to be the highlight that large traders are waiting on to judge the USD with more insights regarding potential shifts in interest rate policy from the Federal Reserve.
Yet the weakness via the USD keeps coming. The broad markets via equity indices appear to be cautious. But the important point to consider along with the USD/SGD is that the caution is being spoken because values are at perceived extremes via technical perspectives. Major U.S equity indices traversing highs, the Dow Jones 30 is making apex marks, so perhaps fear of heights is what might being heard.
What Current Conditions May Mean
And this means that the USD/SGD as it swirls above the 1.26200 level may be causing nervousness too, this because traders are not used to seeing the Singapore Dollar at such strong levels.
- Financial institutions may have a lot of commercial paper they are seeing which continues to indicate the need for a lower USD/SGD, even as they are cautious transacting orders.
- Yet, if U.S inflation numbers this coming Friday remain tame, then there is reason to believe the weaker USD centric stance will be maintained.
- Thus, looking for the USD/SGD to move lower from the current ratios it is traversing may make sense logically for day traders to pursue speculatively – carefully.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.26270
Current Support: 1.26205
High Target: 1.26360
Low Target: 1.26020