The incremental bearish trend of the USD/SGD remains intact. However, a slight move higher in early trading this morning may prove to be an intriguing amount of evidence for speculators who believe that more downside price action is in the cards. After touching a high of nearly 1.35330 on the 8th of March, the USD/SGD has provided traders with a rather steady bearish trajectory.
The USD/SGD is trading near 1.32510 as of this writing, and its maintaining a rather tight range. If current resistance levels hold around the 1.32580 to 1.32650 junctures, this might spark the belief that the USD/SGD is getting prepared to challenge important support levels below. In early trading this morning, the USD/SGD did manage to fall to 1.32330, which it last traded in late February. After hitting this low water mark, the USD/SGD did experience a rather swift reversal upwards.
Reversals are part of the trading landscape and speculators should be ready for an extra dose of potential volatility near term, particularly if the USD/SGD continues to knock on the door of crucial support levels. The 1.325000 juncture, which is currently acting as support, appears to be vulnerable. If the price of the USD/SGD can show a sustained amount of trading below this level, it could create a flurry of bearish sentiment. If the USD/SGD begins to traverse near the 1.33440 to 1.32390 levels below and not suffer a strong reversal higher as a reaction, traders may begin to set their bigger sights on lower values seen the last week of February.
The USD/SGD is within a strong long-term bearish trend, which did suffer a challenge from early March until the third week of April. While some traders may be skeptical of the USD/SGD’s accomplishment to reignite its bearish stand and may be anticipating another bullish move higher, they may have to wait for a change in sentiment regarding risk appetite.
Traders may want to continue to sell the USD/SGD on slight moves higher. If current resistance levels remain stable, speculators cannot be faulted for believing that more downside moment will ensue short term and that support junctures of 1.32470 to 1.32400 are practical wagers for their selling positions. Until proven otherwise, the USD/SGD is showing signs technically that it is still within the clutches of a bearish trend.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.32580
Current Support: 1.32470
High Target: 1.32720
Low Target: 1.32200
