A large volatile range has been seen in early USD/SGD trading this morning as financial institutions prove nervous. Speculators need to practice a huge amount of risk management in the coming hours as the US elections results are calculated and debated.
The Singapore dollar which has enjoyed a solid bearish mid-term trend has seen risk adverse sentiment cause a bullish run higher. It must be pointed out that the USD/SGD has seen violent price fluctuations within the past handful of hours while testing important support lower and then rocketing higher as the forex pair brushed up against important resistance.
Traders who feel the desire to participate in the USD/SGD should use limit orders to enter their positions to safeguard the approximate value they want to launch their wagers. If the US election result remains unclear over the next handful of hours, speculators should be ready for the certainty of further volatility.
However, if a speculator has the ability to withstand the heat of the unknown and wants to rely on their technical perceptions, the ability to sell the USD/SGD if it is challenging higher resistance may prove worthwhile as a speculative position. Pursuing bearish momentum while the USD/SGD trades near highs will be clearly speculating on the notion that reversals lower will develop. The question is when and if this bearish price action will take place.
The USD/SGD is moving fast, so traders need to be careful, but if the 1.37000 price level above is challenged, selling the USD/SGD with the ability to withstand violent moves – and having stop losses in place – could prove to be a logical endeavor. Traders should expect mixed results the remainder of the day if the US election picture remains debated instead of pronouncing a victor. While it appears currently that President Trump may have an advantage, the final result of the US election may not become official quick enough for investors who may react cautiously with their financial assets and set off additional waves of risk adverse trading.
The USD/SGD for the next day will be a speculative trade which could produce sudden and violent shifts of momentum depending on developing news. Traders who want to participate in forex today and tomorrow will find plenty of opportunities, but they will also need to use their risk management skills quite well to safeguard against surprises which could arise.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.37000
Current Support: 1.36200
High Target: 1.37200
Low Target: 1.35600
