The USD/SGD resumed its bearish trend in the middle of Monday after U.S economic data came in weaker than anticipated.
- The USD/SGD is near the 1.34670 ratio as of this writing, which has the currency pair back within its lower depths seen around the 22nd of May.
- The USD/SGD turned rather cautious the past week likely on the heels of financial institutions and large players believing too much bearish momentum had been generated.
- However, yesterday’s weaker than expected ISM Manufacturing Prices reading reignited the belief that a weaker USD outlook is correct.
The low for this morning in the USD/SGD was around the 1.34500 which not only is a very psychological barrier via trading that is geared towards easily identified levels, but the value also hit ratios which brought the currency pair into sight of mid-term support levels. The 1.34500 to 1.34400 price range has acted as a lower range for the USD/SGD since late March. Now the question for bearish traders is if and when the currency pair will be able to swim in its waters again and perhaps go lower.
Big Data and Risk Events Ahead for the USD/SGD
However, traders who feel the direction to take are selling positions, need to also understand that U.S jobs numbers will be published this Friday and the U.S Federal Reserve is standing in the shadows and will make their FOMC Statement next week on the 12th of June. While the USD/SGD has certainly shown price velocity downwards since yesterday’s high of nearly 1.35200, the currency pair now will face a test of sentiment again in the near-term which tests short-term outlooks.
Day traders need to remember their overly ambitious targets are often castles in the air, and instead speculators should be content to look for quick hitting targets which do not expose them to overnight positions. Yes, overnight positions and the ability to hold onto a trade for even a few days and a week is very nice, but a trader needs to have patience, deep pockets and use conservative leverage to do this.
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Current Support and Resistance Levels
The 1.34700 level looks to be interesting via resistance in the short-term and should be watched to see if the USD/SGD can maintain values beneath this mark. If the currency pair is able to sustain its lower depths achieved in the past twelve hours, this would indicate bearish sentiment is still lingering and potentially looking for lower depths.
- The 1.34700 to 1.34600 level for short-term traders today will prove interesting.
- Choppy prices may start to become standard over the next couple of days as financial institutions brace for the jobs reports on Friday.
- Those expecting the USD/SGD to trade lower may be correct, but they should remain realistic.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.34710
Current Support: 1.34635
High Target: 1.34790
Low Target: 1.34570
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