The USD/SGD continues to prove that volatility lives within the Forex pair on occasion. After breaking through support at the 1.340000 mark yesterday, the USD/SGD did not trade in a polite quiet manner downwards; instead, it took a swift route lower and is now challenging important support via prices not seen since early March.
The USD/SGD is within a crucial trading ground and resistance levels should be watched carefully. If the 1.338000 to 133850 junctures prove adequate, the Forex pair may begin to attract the attention of long-term speculators who have pursued bearish sentiment the past year. The 1.33600 support level could prove to be a key near term; if the mark is punctured lower, traders may target the 1.33310 ratio.
The last time the USD/SGD traded lower than 1.33350 in a sustained manner was throughout the last week of February into the middle of the first week in March. Technically, the range of the USD/SGD at this moment remains highly speculative as it sits within a seemingly crucial testing ground regarding its direction. The question speculators definitely want to see answered is where current sentiment will lead the Singapore dollar near term.
Perhaps it is too early to say financial institutions have accepted the volatility in the US bonds market, but the past week of trading globally has seen a return to some bearish activity via the USD in Forex against many major currencies. The long-term bearish trend of the USD/SGD has stood out the past year as the Singapore dollar traded near values that it had not challenged since April of 2018, when the USD/SGD traversed the 1.32500 vicinity the middle of this February. This doesn’t mean speculators should aim for that lower value, but it should be a consideration for the potential the USD/SGD could produce regarding further downside momentum.
Short term, the USD/SGD remains within a critical testing ground. Cautious traders may consider selling the USD/SGD if there is a slight move higher and the 1.33800 level is approached. If current resistance levels hold, the potential exists technically for the USD/SGD to extend its bearish results over the next couple of days.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.33850
Current Support: 1.33590
High Target: 1.33950
Low Target: 1.33310
