The USD/SGD has had a rather wide range within values approximating 1.33100 to 1.34000 over the past five days of trading. This leaves the door wide open to speculators within the Forex pair who believe technical barriers will be maintained. The 1.33900 to 1.33950 marks as resistance look favorable under present conditions short term and may offer opportunities to take advantage of technical trends which emerge.
The long-term bearish trend of the USD/SGD is unlikely to reverse in a violent manner, and this may signal that current resistance levels will prove adequate. On the other hand, recent trading has shown a capable amount of support too around the 1.33500 to 1.33400 junctures. With short-term highs and lows looking rather attractive, now may be the time to pursue short-term trends.
Global risk appetite has been more than steady the past few weeks, but equity indices may be inclined to take a breather and, if trading remains mixed short term in the major stock exchanges, this can be used as an indicator that the USD/SGD's direction may be choppy over the next two days. Traders who want to sell the USD/SGD should contemplate entering the market with limit positions on slight rises within the Forex pair when existing resistance levels are approached.
The ability of the USD/SGD the past month continues to highlight that a bearish long-term trend exists. Traders cannot be faulted for believing technically the USD/SGD may produce further downside momentum, but the past handful of days have seen slight reversals take place when support has been approached. On the 4th of December, the USD/SGD challenged long-term support, which has not been sincerely traversed since June of 2018.
The 1.335000 level is vital within the bigger scope of USD/SGD trading. If this support level is broken lower and values are sustained below for a duration, it will signal that the Forex pair has the ability to traverse even lower and perhaps in a significant manner. Short-term traders may logically assume that the current range of the USD/SGD will be potentially choppy as resistance and support gets tested. However, looking for downside momentum does seem to be the speculative wager which is favorable for speculators when technical perspectives and risk/reward scenarios are considered.
Singapore Dollar Short-Term Outlook:
- Current Resistance: 1.33950
- Current Support: 1.33650
- High Target: 1.34000
- Low Target: 1.33350
