A high of nearly 1.35800 was reached in the USD/SGD yesterday with a brief and powerful spike higher which tested marks from the 3rd of November 2020. However, after achieving this momentary accomplishment, a reversal lower began to ensue and the USD/SGD is actually testing short-term lows. As of this writing, the USD/SGD is near the 1.35300 ratio, and speculators who have favored pursuing downward momentum in the Forex pair may be having their attention spurred.
A low of nearly 1.35160 was seen early this morning, but support produced a quick reversal higher. However, if the 1.35200 juncture continues to be tested and proves vulnerable with bearish momentum, the next important mark below is the 1.35150 ratio which should be monitored. A push below this level and a test of the 1.35100 price in the USD/SGD could be a signal financial institutions may be ready to aim for the 1.35000 juncture via programmed trading.
However, the bullish trend within the USD/SGD should not be disregarded too quickly. Traders who have tried to fight against the month-and-a- half upwards trajectory have likely experienced costly days of unpleasant results as highs have been attained. Yet there is evidence to suggest the USD/SGD does have the capability of reestablishing a bearish cycle. Yes, this means the USD/SGD has tested all speculators.
The solution for short-term traders as the USD/SGD fights within what has become a rather turbulent sphere of reversals is to target key psychological price junctures where they believe programmed technical trading will become robust. This means that traders may find solid results by pursuing existing momentum and sustained trends when important ratios are breached.
The wide range of 1.35000 to 1.35600 appears to be the potential trading sphere for the USD/SGD in the short term. As the Forex pair trades near the 1.35300 juncture traders may be tempted to wait for moves above the 1.35350 to pursue additional ground higher. And moves below the 1.35250 may be prove good for targeting brief encounters with lower values. Obviously, quick-hitting, take-profit orders should be used to take advantage of momentary profits that ensue.
The USD/SGD has produced choppy trading the past day, but its bullish trend has not run out of power quite yet. Wagering on bearish momentum to reignite may seem logical, but it may continue to find roadblocks in the short term. Traders should consider quick-hitting speculative positions in the USD/SGD and use their risk management effectively.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.35440
Current Support: 1.35150
High Target: 1.35640
Low Target: 1.34810
