After moving to a low of nearly 1.31888 yesterday, the USD/SGD has produced a reversal higher in the past twenty-four hours and is now hovering near important short-term resistance. Yesterday’s strong move lower essentially copied the trademarks of dives downward in mid-February and early January of this year. Intriguingly, the lower values yesterday did not quite reach the prices attained by the bearish spikes earlier this year.
As of this writing, the USD/SGD is essentially traversing the 1.32450 mark, and traders with some speculative bearish gusto may believe the 1.32500 level looks attractive as resistance, and perhaps even a nearby stop loss. The bearish trend of the USD/SGD has likely not displayed its last dance and actually may simply be taking a natural breather as transactions take place within the Forex market. The ability of the USD/SGD to challenge and penetrate below the 1.32000 mark yesterday was significant.
However, the inability to sustain a price below the 1.32000 level also indicate that not enough bearish momentum has been created quite yet to generate a bona fide and prolonged attack on the junctures below. Yes, the levels of 1.39000 to 1.31800 may look like tempting targets for traders, but this could prove a road too far. Instead, speculators should aim for nearby support levels and be willing to cash out winning positions, particularly if they are using a lot of leverage to speculate on the USD/SGD.
The long-term trend of the USD/SGD appears to be fully intact. This morning’s move higher should be given attention, though, and serve as a reminder that important tests of lower support ratios often produces reversals. Traders can take advantage of these cyclical waves in Forex. The moves of the USD/SGD as it gravitates lower via its trend should be viewed perhaps like a tide. However, the bearish aspects to the tide certainly remain dominant.
Conservative traders may want to wait for slight reversals higher that take the USD/SGD within a range of 1.32480 to 1.32500 to initiate selling positions. Aggressive traders may be determined to actually enter the market at current levels and position themselves for the potential of lower moves which could develop. Short term, the USD/SGD remains a speculative opportunity for wagers seeking more downside possibilities.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.32520
Current Support: 1.32220
High Target: 1.32630
Low Target: 1.31900
