The USD/SGD, as of this writing, is trading below the 1.33000 mark, and bearish sentiment has again shown that it has the capability of not only fighting off reversals higher, but reigniting the technical perception that further downside action is possible. Traders know that reversals are common in Forex, but the USD/SGD has been within a long-term bearish mode and continues to demonstrate strength with rapid movements on occasion. However, the past month of trading has seen mixed results.
The price vicinity of the USD/SGD is within sight of important short-term support levels near the 1.33850 to 1.33800 junctures. If these values prove vulnerable and further selling of the Forex pair is ignited, the USD/SGD may be ready to promptly test prices seen the past week-and-a-half when it traded between 1.32320 and 1.32750 before suffering a move higher. The 1.33700 marks were seen on the 14th and 17th of May.
Severe changes in value within the USD/SGD are not uncommon and traders need to make wise decisions regarding their use of leverage. The 1.33000 mark, which is currently working as a very close resistance level, should be paid attention to; because if the USD/SGD is able to sustain its value beneath this level, it may signal that bearish momentum is ready to build a more secure footing. The USD/SGD has been choppy since the middle of April.
Speculators may prove wise to simply use support ratios as a place to buy the USD/SGD, and resistance levels as a location to activate selling positions. However, that is much simpler to say compared to actually implementing. Traders need patience and they need to have an exact goal in mind and know what their timeframes are for achieving a successful outcome.
While the bearish ability of the USD/SGD remains tantalizing, the Forex pair will have to seriously challenge support levels below and puncture them to extend a lower trajectory. Traders should target short-term wagers which are not overly ambitious until the USD/SGD proves it can sustain values below the 1.33000 level in a durable manner. Selling the USD/SGD and aiming for the 1.32880 to 1.328500 junctures may be a good short-term speculative position, but stop-losses are urged to guard against reversals higher.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.33100
Current Support: 1.32820
High Target: 1.33640
Low Target: 1.32310
