The USD/SGD not only burst through support levels yesterday, but obliterated them. The Forex pair is now testing values it has not experienced since the spring of 2018. When the 1.33200 crumbled, it seemed to eliminate many roadblocks and the USD/SGD then proved it could fill in technical gaps and challenge values below with a high velocity of speed.
The USD/SGD, as of this writing, is now perched near the 1.32520 mark and speculators who have been pursuing bearish momentum may be wondering if the trend will pause and reverse. Experienced traders know instinctively that counter reactions often take place within Forex, and they may be assuming that after the big move, which has been seen the past two days, the USD/SGD may need to traverse higher for a while.
However, speculators who choose to look for a sudden flourish of upward mobility should remain cautious and not anticipate an aggressive move. It is true from a technical standpoint that short-term support and resistance levels have essentially been erased and new correlations have to be made. What was deemed a targeted support level only two days ago – the 1.33200 level - is now a very high resistance level that may not see the light of day.
Speculators who want to continue to pursue the bearish trend may be making the right decision. Yes, the USD/SGD has accomplished a robust amount of downward price action, but when a long-term chart which looks at trading results from 2018 is viewed, it is clear that the Forex pair may have the capability to enter lower depths and challenge support junctures below.
The current price value of the USD/SGD needs to be watched intently; if the 1.32500 mark proves vulnerable, the Forex pair could aim for 1.32350 rather quickly. Traders should not be anticipating the dynamic moves seen over the last two days from the USD/SGD, but it might be logical to continue selling the Forex pair while using carefully chosen resistance levels as stop losses and exploring the potential for the bearish trend to potentially continue. The demise of support levels within the USD/SGD was certainly fast the past two days, but it does not come as a major shock. Technically, the Forex pair may have additional room to traverse lower.
Singapore Dollar Short-Term Outlook:
- Current Resistance: 1.32700
- Current Support: 1.32350
- High Target: 1.33030
- Low Target: 1.32050
