After hitting a high of nearly 1.33330 early this week, the USD/SGD has proven capable of shaking off its reversal higher and reigniting bearish sentiment. Current values are near key short-term support levels and, if they are broken lower, speculative wagers seeking more downside action may prove attractive. The 1.32300 mark could prove crucial today, and if it is punctured lower and values are sustained beneath this vicinity, the support level of 1.32250 should be watched intently.
Traders who want to use tight stops above may find the ability to go short the USD/SGD and manage their risk conservatively. Since reaching the high of 1.33330 on the 18th of January, the Forex pair has produced a significant bearish trend. If current support levels prove vulnerable, the USD/SGD may retest targets below rapidly.
Global risk appetite this morning may prove to be optimistic and have the capability of producing exuberant trading near term. The USD/SGD has been within a strong long-term bearish trend and its reversal higher may have caused problems for some speculators who tried to fight against the short-term move higher. However, the past few days of trading have highlighted that risk/reward scenarios still remain solid if speculative selling positions are pursued.
The 1.32000 level is an important psychological mark for the USD/SGD. Late trading in December and early this January underscored the ability of the Forex pair to trade below the 1.32000 level, but it could not sustain values. However, the reversal upwards all the way to the 1.33330 level should be looked at with a strong dose of skepticism by traders. Financial institutions returning from their holidays likely affected the USD/SGD with large transactions late in the first week of January. After hitting month-long highs technically, the USD/SGD appears to have easily re-established bearish momentum.
The USD/SGD is testing important support levels and if they falter, traders may anticipate further speculative bearish sentiment to grow. Selling the USD/SGD and using resistance levels as stop loss ratios may prove to be worthwhile. Conservative traders may want to use selling limit orders near the 1.32410 to 1.32450 junctures to launch their short positions. If current support levels crumble in the USD/SGD, the Forex pair may be setting the stage to challenge lower values seen in April of 2018.
Singapore Dollar Short-Term Outlook:
- Current Resistance: 1.32420
- Current Support: 1.32250
- High Target: 1.32510
- Low Target: 1.32130
