Day traders may enjoy current market conditions if they are technically inclined. The USD/SGD has taken on a rather cautious dance the past handful of days, this after moving towards the 1.26040 mark on last Thursday. The USD/SGD is now around the 1.26440 mark and has seen several reversals happen over the last two days of trading.
The Singapore Dollar continues to swim in its strongest waters against the USD, the bearish trajectory has not vanished. However, the most recent action in the currency pair shows that financial institutions are wary about the lower values now being traversed. The U.S inflation data last Friday did not cause a strong and sustained selloff. The USD/SGD went up to nearly 1.26500 on Friday and then sold off to around the 1.26170, but the lows then saw a reversal higher.
Waiting for Next Round of Impetus
The broad markets including Forex and the USD/SGD seem to be waiting on the next round of impetus. Nervous sentiment continues to be a talking point and seen on major U.S equity indices, which is likely causing financial institutions to brace for impact. This because incremental gains in the stock market in the U.S recently have then been hit by selling. In Forex the weaker USD centric attitudes prevail, but financial institutions may be wondering when the USD/SGD bearish trend will come to an end.
Current conditions have produced near-term reversals and the dance is opportunistic for day traders but also dangerous without proper risk taking tactics practiced. The USD/SGD may provide speculators the chance to sell the currency pair when perceived resistance levels are touched.
USD/SGD Barometer and Market Outlook
Day traders should be careful in the short and near-term. The broad Forex market has seen the USD incrementally pick up some strength the past day and a half, this after the return of U.S investors after their long holiday weekend and getting back into their offices yesterday.
- Caution is certainly being seen and looking for big high velocity moves today and tomorrow seems a bit farfetched.
- However, if risk sentiment is being gauged, it appears the biggest danger in the marketplace right now is negative influence.
- This because positive momentum may be hard to find in the near-term.
- Noise in the market is making risk adverse sentiment stronger, which could mean we see cautious USD/SGD buying followed by fights lower.
- Choppy conditions look like they will prevail for the moment.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.26470
Current Support: 1.26395
High Target: 1.26525
Low Target: 1.26320