The USD/SGD is challenging support levels not fully tested since 2018. This is occurring as global risk appetite is proving optimistic for a number of reasons. Global equities via indices are challenging record highs in many instances, the US election appears to be offering investors a clear looking glass into the future and there seems to be genuine hope that a vaccine for coronavirus is on the horizon.
Speculators can look at a one-day chart of the USD/SGD and see that the Forex pair has been able to comfortably challenge support levels without significant reversals being demonstrated. Traders with the capability of using resistance levels as stop loss ratios have likely been rewarded if they have been selling the USD/SGD. The Forex pair certainly isn’t guaranteed to move in only one direction, but its bearish trend has been moderately outstanding and support junctures continue to appear vulnerable.
The support level of 1.34400 appears to be an interesting inflection point; when it was punctured below on the 9th of November, a rapid amount of additional selling took place and the 1.34100 mark came into sight, but a reversal higher took place. Speculators will want to certainly look at the 1.34400 level today and if the USD/SGD moves below this support juncture, volatile trading should be anticipated.
Current market action for the USD/SGD is hovering slightly above the 1.34400 juncture. Traders who want to sell the Forex pair may want to wait for a slight reversal higher to attain a bigger profit if they are looking for short-term downward action and quick profits. But patient traders who can use a comfortable stop loss and manage the amount of leverage they are using without risking their entire cash balance may want to be active sooner rather than later in the USD/SGD.
Future calls from US equities are mixed momentarily, but pinpointing the exact moment when investment houses will again start proving they are going to be buyers near term is difficult. This simply means that if positive momentum continues on global indices and risk appetite remains steady to optimistic, the USD/SGD will likely continue to challenge support levels and brush them aside. Selling the USD/SGD looks like a logical speculative choice for traders.
Singapore Dollar Short Term Outlook:
- Current Resistance: 1.34610
- Current Support: 1.34400
- High Target: 1.34910
- Low Target: 1.34200
