The bullish run higher in the USD/SGD reached another apex early last week when the Forex pair moved to a ratio of nearly 1.36920 on the 20th of July. Following this challenge to values not seen since November 2020, the USD/SGD has produced a reversal lower. Speculators need to decide if the USD/SGD trend lower will continue to build momentum, or if the Forex pair will use the 1.36000 mark. which it is currently hovering above as a legitimate support level which triggers additional buying in the short term.
The USD/SGD has certainly been within a strong trend for almost two months, but before making this move upwards, the Forex pair was trading near 1.32100 in late May, which tested lows seen in February and January of this year. Prior to those timeframes, the last time the USD/SGD traded near those depths was in April of 2018. The values higher attained last week tested prices not seen since early November of 2020.
Technical traders have a rather intriguing resistance price range to consider. Short-term resistance appears to be the 1.36250 to 1.36300 junctures. If prices can be sustained above these marks, traders will certainly start to think about the potential for higher values. However, if the 1.36000 juncture proves vulnerable and support begins to indicate that further tests lower could ensue, this might set off speculative volatility.
Concerns about a rise in coronavirus have begun to stir within the Asian media again and this has likely had an effect on sentiment within financial institutions. The U.S Federal Reserve has also added crucial ingredients into the volatile mix of the USD/SGD which likely spurred on bullish behavior. Speculators who feel the USD/SGD has been overbought cannot be faulted. If they choose to be sellers and seek downward pressure, however, they should be cautious with their wagers because the USD/SGD has proven capable of demonstrating reversals higher after testing support which has consistently risen since late May.
Going against the bullish trend is a speculative endeavor. Traders may want to see the 1.36000 mark breached lower before they try to pursue selling positions which anticipate more bearish momentum. Short-term speculators are urged to use risk-taking tactics which maintain solid stop losses. If a trader chooses to be a buyer of USD/SGD, they might want to do this using slight reversals lower, which ignite long positions while seeking nearby resistance as take profit locations.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.36280
Current Support: 1.35980
High Target: 1.36990
Low Target: 1.35520
