Though not a tidal wave of price velocity, the USD/SGD has managed to demonstrate movement lower, yesterday’s declines have sustained the near-term trend as sentiment appears to be shifting.
- The USD/SGD was near the 1.34885 ratio on Monday the 2nd of December, and maintained its higher values into Wednesday of last week when the 1.34330 vicinity started to be challenged below.
- Selling in the USD/SGD has not been powerful, but it has been incremental and this is an intriguing sight.
- While it certainly shows that financial institutions remain cautious, there are signs that some believe the USD/SGD may still be in overbought territory.
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Yesterday’s selling in the USD/SGD kept up the movement lower. This morning’s price action has sustained lower elements and the price of the currency pair is near the 1.33855 mark as of this writing. The USD/SGD does remain in the higher elements of its mid-term range. However, important support is in sight near the 1.33750 area.
USD/SGD Shift of Perspectives as U.S Data Awaits
Short-term traders should take into consideration the USD/SGD is traversing an area that has seen lower price action in a sustained manner since late in the second week of November. The table has been set by financial institutions to see if U.S inflation data coming tomorrow may provide the impetus needed to create greater downwards velocity. However before the U.S data is pronounced financial institutions may start to become cautious and maintain the current short-term price range as they away the U.S Consumer Price Index results Wednesday. Weaker inflation numbers would help the USD/SGD selloff a bit more.
Perspectives in financial institutions in the broad Forex market appear to be calming down globally. The ability of the USD/SGD to begin flirting with support, and proving that it is vulnerable correlates to other currency pairs which are starting to see USD centric positions become more tentative. Nervous sentiment which created risk adverse buying of the USD over the past month may be starting to lessen.
Higher Elements of the USD/SGD Intriguing
Intriguingly the current realm of the USD/SGD is traversing in territory seen in late July of this year. Meaning the USD/SGD is within a price range that it stood before the U.S Federal Reserve clearly showed that it was intent on lowering interest rates. The lows of 1.27900 seen in late September appear to be a long ways away.
- However, nervous behavioral sentiment which created the strong bullish run upwards to the current higher elements of the USD/SGD may now be running out of fuel.
- If nervous sentiment lessens and financial institutions digest the idea that U.S economic policy while certainly about to change may actually prove to be less impactful than feared, it would help the USD/SGD move lower.
- Day traders who believe the USD/SGD remains in overbought territory may be proven correct, but they should not get overly ambitious pursuing targets that are too far away.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.34010
Current Support: 1.33810
High Target: 1.34150
Low Target: 1.33740
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