The USD/SGD has now attained additional lows and is challenging values last seen in January of 2023, this as the currency pair shows long-term charts are within speculative sights.
- The USD/SGD is trading near the 1.30845 level as of this writing, which not only has broken through near-term support levels easily, but is also within sight of lower values not traded in a handful of years.
- The ability of the USD/SGD exchange rate to create the dynamic bearish trajectory has put the currency pair back to within a value range in which the Singapore Dollar needs to be considered among the strongest currencies.
Yes, the move lower has certainly correlated to the broad Forex market. But the USD/SGD has not only traded lower on USD centric weakness, but technical realms are which have attracted speculators are likely increasing selling wagers too. The current value of the USD/SGD puts it directly in sight of values which have seen strong reversals higher in the past. The question is if speculators will be brave enough to wager on even lower movements from the USD/SGD.
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Technical Levels for the USD/SGD around 1.30500 Alluring
There are definitely fundaments which are causing financial institutions to lean into bearish sentiment for the USD/SGD. However, the obvious support levels around the 1.30500 mark stands out too, these are significant lows for the currency pair. And the 1.300000 level is a major psychological ratio technically. Tomorrow’s Fed FOMC Meeting Minutes will prove interesting, but it may not really stir the Forex market too much. 1.30000 by the way is extremely ambitious and should not be aimed for by poor financed day traders.
Existing behavioral sentiment remains the key. If global political news remains tranquil and economic data remains rather quiet, the potential for more summer optimism via risk appetite may be the gear that turns the USD/SGD in the near-term. Traders need to be cautious, the ability of the USD/SGD to trade lower since the 15th of August has been strong, but the bearish selling may be looked at skeptically by some which may cause reversals.
Long-Term Values Being Challenged by Financial Institutions
Day traders sometimes need to remember some of the price action in Forex is more like a game to financial institutions than anything else. The ability of the USD/SGD to come within sight of long-term lows has created the potential of a flirtation via programmed trading systems which will now focus on key support levels. The question is if the support will trigger reversals higher, or if the the selling will be strong enough to sustain more selling.
- Now that 1.31000 has been penetrated lower and sustained for the moment, traders will certainly start to look at the 1.30700 level as a target.
- Traders who have done well should remain realistic and not become overly ambitious.
- Profits should be cashed in if they exist, or maybe better the use of trailing stops which protect profits made can be used in some brokerage platforms.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.30880
Current Support: 1.30770
High Target: 1.31100
Low Target: 1.30590
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