The US dollar initially fell on Tuesday against the Singapore dollar but has since seen a lot of buying pressure. Not just here, but against other currencies as well.
USD/SGD
The Singapore dollar gave back some of the gains, though, and it looks like the 1.29 level is significant support for the US dollar. The market rallying from here would perhaps open up the possibility of a move to the 1.30 level. The 50-day EMA is currently at the 1.2876 level and rising; it could be a bit of a short-term support level. Underneath there, we then have the 200-day EMA at the 1.2858 level. This is the “floor in the market” at this point in time.
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Key Technical Levels and Yield Dynamics
If we can stay above there, then I believe that this pair continues to be bullish, and it's worth noting that the 10-year yield in the United States actually rose during the session; at the time of recording, it is 4.63%. The 1.30 level being broken to the upside lets the market really take off at that point, but ultimately this is a market that I think will remain more of a grind than anything else, which makes sense because that's the typical behavior for the Singapore dollar, as it is a slow-moving market under most conditions.
It's a smaller currency pair, and I think it also opens up the possibility of the market going much higher, but it may take months. If we were to break down below the 200-day EMA, then I think at that point in time, you probably see this market continue to drift lower, and it would make a certain amount of sense that if you saw this, even if you didn't short this pair, you may be looking to buy the US dollar against multiple other currencies.
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