In a day that could have proven to be volatile, the USD/SGD has remained quite stable in early trading even as the Singapore government has released its budget outlook for the year. The USD/SGD has not seen a sea of volatility and has maintained its bearish price range while producing some rather comfortable reversals higher and lower.
The lack of any major surprises from the Singapore government thus far has helped the USD/SGD sustain its bearish trend. The government has earmarked an increase in spending to help the economy and social endeavors as it combats the effects of coronavirus on the nation, but the stimulus programs are meeting the expectations of many analysts.
Technically, the USD/SGD remains within shouting distance of intriguing support levels and, in earlier trading this morning, the Forex pair actually tested the 1.32100 price vicinity. The low water mark challenged earlier failed to break through important support, but if the 1.32100 level is broken lower, the USD/SGD would then be ready to test early January values. Simply put, the USD/SGD remains within tantalizing proximity to long-term bearish values last seen in the early spring of 2018.
Speculators who have been pursuing downward momentum should continue to monitor trading conditions closely within the USD/SGD. If the Forex pair doesn’t experience a swift reversal higher short term, this may be a signal that additional bearish momentum will develop for the USD/SGD. The support level of 1.32320 should be given attention; if the juncture proves vulnerable, traders will likely target lows made early today.
The USD/SGD, after seeing a steady bullish run from the 6th of January until the 4th of February, has re-established its bearish stance in a strong manner. If a bullish reversal does not happen today following the Singapore government’s budget report, traders may consider this a barometer regarding its bearish sentiment, which has been dominating charts long term technically.
Selling the USD/SGD as it tests important support levels may feel speculative, but the trend has been strong and, until the Forex pair is able to demonstrate otherwise, pursuing short positions seems the logical decision. Traders who are cautious should look for slight reversals higher which touch the 1.32400 juncture and place stop losses slightly above this mark, while they activate their selling positions using limit orders.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.32490
Current Support: 1.32320
High Target: 1.32590
Low Target: 1.32130
