The USD/SGD has recovered its lower price range and as of this morning is near the 1.31520 ratio as financial institutions are allowing optimistic outlooks to take control of Forex.
The USD/SGD has proven to be an important barometer in the broad Forex market, producing a significant amount of selling and now traversing near the 1.31520 vicinity with fast trading. The USD/SGD suffered highs of nearly 1.35600 only one week ago as concerns grew loud regarding U.S tariff mandates. However, the past handful of day showed strong selling and tested the 1.31215 ratio yesterday.
Since touching yesterday’s lows which not so coincidently in my opinion tested values seen on the 7th of November 2024 – as U.S election results saw sentiment ripple through global markets – the USD/SGD has seen steady trading within its lower price range. The U.S tariff situation remains unsettling, but financial institutions are clearly demonstrating a belief in more optimistic days and testing the Forex waters.
USD/SGD Support Levels and Behavioral Sentiment
The USD/SGD is now situated on an important support level which may prove a dynamic trading ground as speculation and cash forward positions are taken by large players and financial institutions. Once again the 1.31000 mark appears to be a place that may be a target for sellers, but because tariff policy is still being negotiated between China and U.S loudly, there is a chance for volatility to the upside. Singapore is directly in the middle of the U.S/ China tariff debate along with the USD/SGD results.
The ability of the USD/SGD to motor downwards with velocity is not so surprising considering the amount of volatility within the global markets the past two weeks. Risk adverse reactions have now turned towards risk appetite in the past few days. However, traders should not get too over confident quite yet. Traders should also remember Forex volumes will drop off dramatically on Friday as holidays are observed, meaning Thursday’s trading could be important before a long holiday weekend ensues.
USD/SGD and Unknown Impetus
While it may be tempting to continue to look for downside in the USD/SGD and tests near the 1.31400 to 1.31300 ratios, traders need to keep in mind the clock is ticking. On Thursday financial institutions will start to position their holdings for a situation in which they may not trade for a number of days, which leaves the question open regarding how they want to manage their risks.
- Large players may not want to have open positions going into Friday and this coming weekend.
- Day traders should be extra careful to monitor the USD/SGD and need to remain cautious. T
- There is a chance for sudden movements, particularly if an unfavorable news development occurs on Friday or over the weekend.
- The USD/SGD will attract more speculative sentiment driven by optimistic sentiment, but trading the past twelve hours is showing durable support for the moment.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.31610
Current Support: 1.31490
High Target: 1.31760
Low Target: 1.31350
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