Perspective is a key element when trading. Short term gyrations can test the abilities of the best traders. The past few trading sessions have seen the USD/SGD generate bullish momentum and the forex pair enters today hovering near the 1.37050 ratio with many eyes on its direction after challenging higher resistance near the 1.37350 level on Friday.
Early last week the USD/SGD was displaying strong downward momentum, but a test of the 1.363000 juncture mid-week proved to be an inflection point for the forex pair and an abrupt reversal higher ensued. That test of that low watermark for the USD/SGD appears to have sparked buying, the 1.37000 has become an area of certain focus the past three trading sessions as it technically shows battles regarding momentum.
A look at a five-day chart of the USD/SGD displays the choppy trading which has developed. Speculators who have pursued the bearish trend of the Singapore Dollar may have been bruised the past few days if they have remained stubborn and have continued to look for bearish behavior to reemerge too quickly. Perspective and patience may prove to be an important trading capability in the near term for the USD/SGD. There does seem to be better risk-reward scenarios for traders who still believe the USD/SGD will continue its selling strength, but the question is when exactly this event will see a significant push. Until then speculators can get hurt if they are not careful.
The current price vicinity of 1.37050 to 1.37100 may prove tempting for speculators who believe a bearish trend will reignite. However late last week’s trading proved there is room for upside buying power to be displayed and resistance levels to be tested. Perhaps entering a selling position of the USD/SGD within its current price action with a stop loss near the 1.371500 level is attractive. If the stop loss is hammered and bullish behavior persists another test of the 1.373000 juncture could develop short term.
As always speculators have an opportunity to take advantage of choppy forex conditions and can trade on both sides while looking for short term momentum. The question of ultimate direction however is still important, and traders should take into consideration the mid-term trend of the Singapore Dollar which has shown bearish momentum.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.37150
Current Support: 1.36880
High Target: 1.37340
Low Target: 1.36700
