The USD/SGD is sustaining long-term lows and as technical values continue to be tested that have not been seen since 2014 price velocity and fast trading persists.
- When the U.S jobs numbers were reported last Friday the USD/SGD fell to a low of nearly 1.29510 before reversals higher immediately began to be demonstrated.
- The USD/SGD pair is traversing values that it has not seen sustained since November and December 2014.
- Technical traders who are trying to gauge support and target levels within the current Forex landscape for the USD/SGD can look at twenty year charts to try and gain a perspective, but it is questionable how much this will help.
Yes, the USD/SGD is trading near values last seen almost ten years ago, and there is evidence from 2011 until the end of 2014 the currency pair did traverse within lower value depths. However, short-term traders will be hard pressed to try and gain insights from historical charts, this because intraday results are being affected by behavioral sentiment that doesn’t correlate to events from a decade ago. The current value of the USD/SGD at the time of this writing is near 1.30555. And fast changes within prices are being seen.
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Near-Term Consideration for the USD/SGD
Tomorrow the U.S will publish crucial inflation date via Consumer Price Index numbers. After the U.S posted weaker than expected jobs numbers last Friday USD centric weakness was heightened, but rather quickly - reversals higher developed. The reason for the spark higher which did have considerable price velocity was because financial institutions understand they still do not have a sure game plan regarding the U.S Fed’s Federal Funds Rate decision on the 18th of September.
Choppy conditions in the USD/SGD should be expected today and leading up to the inflation statistics that will be published via the U.S CPI reports. If inflation comes in weaker than anticipated, this could spark additional USD centric weakness. However, two other important events will follow on Thursday. The ECB will issue its Main Refinancing Rate and the U.S will release its PPI data. The interest rate decision from the ECB may be a looking glass into next week’s U.S Fed FOMC Statement.
24 Hours of Potential Volatility for USD/SGD Traders
As the USD/SGD continues to trade within the lowest boundaries of its long-term values, traders need to brace for tests which reflect behavioral sentiment being generated by short-term shifts which could come from a variety of different places. Tonight’s debate between Kamala Harris and Donald Trump could fuel trading, particularly if there is a clear winner. But traders certainly cannot depend on such things to cause fluctuations in the USD/SGD.
- Instead guidance should come from U.S Treasury yields which are at one year lows, and seem as if they could go lower.
- And that may be a clue regarding outlook for the USD/SGD.
- Financial institutions may still think the currency pair could traverse to new depths, but day traders in the USD/SGD cannot bet blindly and will need impetus to be generated via U.S inflation data which will come tomorrow and has an unknown outcome.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.30580
Current Support: 1.30495
High Target: 1.30750
Low Target: 1.30225
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