- I continue to pay close attention to the 1.34 SGD level.
- This is an area that has been important for this asset model times as we have plunged into it, only to find buyers.
- It’s also right around the 50% Fibonacci retracement level, which of course a lot of traders will be paying close attention to.
Recently, we have seen traders trying to bet on the idea that the Federal Reserve might start cutting rates, and if that is in fact going to be the case, then the US dollar will lose strength. That being said, the Singapore dollar is in exactly known as a highflyer, and of course the USD/SGD currency pair is generally rather quiet. It’s not a huge pair, but it does give you a way to measure the idea of US banking against Asian banking, and of course the idea of whether or not there will be a lot of risks taken in the Asian region.
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Support
At this point in time, the support is crucial, and we need to pay close attention to whether or not it actually holds. All things being equal, this is a market that I think if we can break back above the 1.3450 level, it could send this market much higher, perhaps reaching toward the 1.35 level, maybe even the 1.3650 level over the longer term.
If we were to break down below the 1.3350 level, then I think the bottom falls out we probably see the US dollar fall rather drastically, perhaps opening up a move down to the 1.3250 level underneath, which of course is an area that previously has been important. Either way, I think that we will continue to see a lot of choppy behavior in this pair, which is typical as the market is obviously one that tends to move from one support/resistance level to another.
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