The USD/SGD is a solid barometer of the fear levels that are colliding with speculative price action the past couple of weeks, this as the Iranian war continues. The USD/SGD as of this morning is around the 1.27375 vicinity, but due to the choppiness and volatility still in Forex, readers are urged to compare this price to the existing values as they look at this article. On Monday the USD/SGD popped towards the 1.28555 this as those highs touched prices seen in the third week of January. Conditions remain fast.
And this is where it gets interesting for day traders, certainly the USD/SGD like all other major currency pairs is rather dangerous at this juncture, but there may also be opportunities with the currency pair to take advantage of as nervous momentum swings. The rapid move higher on Monday happened after a weekend of boisterous headlines making noise. Global Forex markets were rattled with fear on early Monday, particularly as Crude Oil prices skyrocketed early.
USD/SGD Calm Restored In Degrees
However as this past Monday ebbed, calm started to come into the marketplace and the USD/SGD began to see selling, this as financial institutions believed the currency pair had been overbought. As of now around the 1.27375 mark, the USD/SGD is traversing lows not seen since the beginning of the Iran war. Yes, the USD/SGD was below the 1.27000 level on Friday before military action started on Saturday the 28th of February.
Crude Oil prices remain somewhat calm this morning. This is a barometer of risk sentiment, and Forex traders who are skeptical of the correlation should use an open mind and compare charts of broad USD prices compared to the spikes and reversals in the commodity. If energy prices show stability or go lower, it is likely financial institutions will remain tranquil. The USD/SGD is in a situation in which lows may be looked at via momentum.
USD/SGD Near-Term
The U.S will release inflation data today via CPI numbers. Who will be paying attention? Likely not many. The news from the Middle East will continue to influence and inform decisions.
The USD/SGD is still above pre-war levels and it will take some confidence to return the currency pair to lower values.
Day traders may want to look for short-term movements that technically correspond to quick hitting intervals, this while using an abundance of risk management.
Looking for lower price action in the USD/SGD may be worthwhile, but it may also prove to be too optimistic for speculators unless they have the stamina to maintain wagers.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.27395
Current Support: 1.27310
High Target: 1.27520
Low Target: 1.27170