The USD/SGD continues to challenge resistance levels and has proven it has the capability of brushing them aside. After reaching a high water mark near the 1.36540 level on Friday, the USD/SGD did experience a bit of a reversal lower. However, support levels actually have proven rather durable and, although the slight bearish momentum has exhibited some strength, the USD/SGD remains almost comfortably above the 1.36000 juncture currently.
As of this writing, the USD/SGD is trading near 1.36100, and if the 1.36000 ratio produces a durable support level, it may spur additional short-term buying sentiment. On the 20th of July, the USD/SGD did break through the 1.36500 mark and actually came within sight of 1.36940 momentarily in a quick market. Short-term traders who insist on looking for upwards momentum may want to take a glance at three-month and six-month charts to gather additional perspectives.
The last time the USD/SGD reasonably stayed within its current price band and challenged higher levels on a consistent basis was in October and September of 2020. This leaves the door open to two different considerations. One, the USD/SGD has been overbought and its rather intriguing bullish run will run out of power. Or two, the USD/SGD is actually proving it wants to replicate values seen in September and October of last year.
Important resistance appears to reside around the 1.36300 to 1.36500 marks; if these levels continue to be tested and are proven vulnerable the USD/SGD could put in a test of 1.36700. Traders who have continued to wager against the upwards trend may be experiencing doubts regarding their stubborn stance and may have lost money too. Bearish traders who insist on looking for downside price action to reemerge are urged to use strict risk management.
The USD/SGD has proven rather resilient within this bullish parade which has been produced rather consistently since the end of May. While the USD/SGD certainly has produced reversals lower which offer bearish traders a chance to cash out short-term selling positions, support levels have incrementally increased. If the 1.36000 level today proves that it can be sustained this may be another sign that support ratios have grown stronger and that another wave of buying may be seen within the USD/SGD short term.
Singapore Dollar Short-Term Outlook
Current Resistance: 1.36350
Current Support: 1.35950
High Target: 1.36750
Low Target: 1.35620
