A wide trading zone continues to be demonstrated in the USD/SGD for traders. The currency pair at this juncture is around the 1.27970 mark, but readers are asked to compare this written number to actual market results as they look at this article. The broad markets across a wide array of assets remain nervous and fast. Skittish conditions in Forex regarding USD centric attitudes are producing difficult circumstances for traders who are trying to take advantage of momentum.
Behavioral sentiment in the USD/SGD remains reactionary. Monday’s nervous early highs around the 1.28655 realm suddenly dove towards 1.27300 within a few hours as financial institutions try to balance their outlooks as rhetoric from U.S President Trump caused havoc in the global markets. The value of the USD/SGD at this moment is swimming within values seen at this time last week. The 1.27650 to 1.28200 levels the past day have become a playground.
Movement and Changing Tides
However, swimming within known depths doesn’t make the USD/SGD any safer. Tides are swiftly changing and day traders need to engage strict risk taking tactics. Optimistic speculators – about a sudden chance of sustained calm regarding the Iranian war – may be too idealistic. Traders should consider keeping targets realistic and not over reaching. The thought that the USD/SGD is within overbought conditions as it traverses slightly below 1.28000 may be correct, but outlooks are changing via nervous near-term whims.
The speed of the USD/SGD is higher than normal too. The velocity in the USD/SGD is always sound, but the past few weeks have seen an increase which suggests that entry price orders should be contemplated, because live market orders may be too much of a gamble via fills. This is not likely to change in the remaining days of this week.
Potential Agreements and its Unlikelihood
Traders need to remain pragmatic. The U.S administration’s claims that an agreement with Iran is being discussed might soothe some sentiment among financial institutions, but it is also possible that what is being heard is part of ‘the fog of war’ and a ruse to create reactions inside of Iran.
What does this have to do with the USD/SGD?
The price of Crude Oil remains a key barometer in the global markets, this because many nations rely on supply that comes via the Straits of Hormuz.
The USD/SGD will react to sudden news developments.
While the thought of heights that can be taken advantage of because of too much nervousness with selling positions may feel worthwhile, traders have to decide if shifting sentiment will match their expectations.
The USD/SGD remains at the mercy of global conditions.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.28020
Current Support: 1.27920
High Target: 1.28220
Low Target: 1.27675