Before going into the weekend, the USD/SGD managed to sustain its bearish trend without suffering any snap reversals higher before Forex markets closed. In early trading this morning, the Singapore dollar resumed its solid downward movement and vital support levels are within focus. Short-term speculators may be eyeing the 1.34200 to 1.34160 junctures lower. Traders have plenty of technical impetus to survey regarding the USD/SGD’s momentum.
This is not a one-way call claiming the only direction the USD/SGD can pursue is downward, but short-term indications do suggest that ‘bulls’ have not been able to maintain strong moves upward. Resistance levels have incrementally lowered and the Singapore dollar is challenging important Forex values versus the USD.
The key psychological barrier is certainly 1.34000, but before a sincere test of this mark can take place, the 1.341500 level first needs to be punctured and trading of the USD/SGD would need to see a day of sustained trading to create further traction downwards. There will certainly be short-term reversals higher too, but if current resistance levels hold this may signal further thrusts lower.
Global risk appetite remains, as always, an ingredient that cannot be discounted by short-term speculators. Equity indices have been mixed recently, but they do remain near lofty heights and traders need to remain informed regarding potential reasons for volatility. The US will have a long holiday weekend which will begin to affect trading volumes significantly later this week. This could create a framework for financial institutions to act within the next couple of days in a robust manner.
The USD/SGD has maintained a strong bearish stance. There have been reports from Singapore saying its economic contraction this past quarter was not as bad as the forecast, and government officials, though cautious, have been sounding optimistic regarding exports too. Via a technical look at the USD/SGD, it is clear the Forex pair is within a stronger value range.
Speculators may want to continue pursuing selling positions of the USD/SGD with the notion that the Forex pair is entering a significant price band. The Forex pair has not traded its current values in a steady manner since June of 2018. Traders who look at long-term technical charts may appreciate what could await the USD/SGD if it continues to challenge support levels, which do look vulnerable.
Singapore Dollar Short Term Outlook:
- Current Resistance: 1.34340
- Current Support: 1.34150
- High Target: 1.34470
- Low Target: 1.34000