The USD/SGD continues to knock on the door of important long-term support levels. The Forex pair is challenging a price level not traded since early June of 2018. If current support ratios continue to prove vulnerable it may create an opportunity to pursue levels which are decisively lower. The current support junctures below 1.33350 to 1.33290 could prove crucial near term.
The USD/SGD, however, has not enjoyed a one-way avenue downward. Speculators have to be ready for occasional reversals upwards and not get too greedy with overly leveraged pursuit of bearish momentum. A look at a five-day chart shows the choppy conditions within the USD/SGD and should make speculators consider stop loss ratios carefully. If a trader is using too much leverage and the Forex pair goes against the intended direction of the position, the trader can find himself or herself knocked out of their wager before it truly begins to produce the results anticipated.
The seemingly seesaw range of the USD/SGD, however, has produced almost a steady decrease in resistance levels. The bearish action within the Forex pair continues to make selling the USD/SGD an attractive trade. The 1.33500 level as of this morning is working like a magnet and, as of this writing, the value of the Singapore dollar is hovering near this ratio.
Resistance levels are intriguing and may prove adequate around the 1.33670 level. Yes, the USD/SGD does have the capability to traverse higher. However, technical perceptions do seem to indicate the ability of the USD/SGD to remain steady within its downward trend, and if resistance continues to produce capable reversals, patient traders may find profitable outcomes.
If the 1.335000 level remains in play, speculators should be on the lookout for trading below this juncture to be sustained. If value begins to penetrate the 1.335000 mark and aims for low levels, traders can still expect to see a bounce upwards, but yesterday’s trading near the 1.3320 level serves as a warning regarding where the USD/SGD ultimately may want to traverse again. Global risk remains steady even as it displays some caution short term. Continuing to pursue selling positions of the USD/SGD will likely feel as the correct speculative position.
Singapore Dollar Short-Term Outlook:
- Current Resistance: 1.33680
- Current Support: 1.33290
- High Target: 1.338000
- Low Target: 1.33150
