The USD/SGD has continued to incrementally increase in value the past week, but it has begun to run into a rather interesting amount of resistance near the 1.34700 juncture. Mid-term highs are clearly within sight for the USD/SGD. Late March highs near the 1.34950 mark are certainly the next important target higher for bullish speculators. If the 1.35000 juncture were to prove vulnerable, traders with long positions may dream about the 1.35200 vicinity seen on the 8th of March.
However, after establishing a long-term bearish trend, the USD/SGD certainly still has a large amount of speculators who remember this downward momentum and may be tempted to wager on its resurgence. Being right about market direction is often easier than being profitable about actual trading. This is because it is much simpler to predict the trajectory of the marketplace compared to actually timing the moment when it is correct to establish a speculative position.
While it appears that the USD/SGD may be overbought and perhaps logical to believe the Forex pair may soon run into technical resistance which will prove durable, traders who have the desire to sell have an important decision to make. One option bearish traders may want to consider is to sell the USD/SGD on slight movements higher and use tight stop losses to guard against another wave upwards. Selling the USD/SGD near the 1.34650 to 1.34700 junctures does look rather attractive for traders who believe bearish sentiment will begin to be expressed.
Because the bullish trend has been rather strong in the USD/SGD since the end of May, traders should not get overly zealous with their expectations regarding selling to produce a wild ride downwards. Take-profit orders should be kept within a respectable distance and not be overly greedy. The USD/SGD may still have some bullish power that needs to be demonstrated.
Yes, speculators who believe the USD/SGD will challenge the 1.34800 to 1.34900 price levels may be making a good choice too. Traders need to choose carefully in the short term. Technically, the USD/SGD is testing an important price range. The notion that downward momentum is going to develop sooner rather than later is a wager some traders may be willing to take. Selling the USD/SGD is an attractive choice, but could prove dangerous if proper risk management is not used.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.34800
Current Support: 1.34400
High Target: 1.34980
Low Target: 1.33970
