The USD/SGD is near the 1.27650 vicinity as of this writing, the currency pair has crept back to within sight of prices seen in the first week of July, this as global risk sentiment has seemingly improved.
As global investors show signs of increased risk appetite in equities, the USD has again taken on a weaker tone. The USD/SGD in trading today has approached values seen in the first week of July. The current price of the USD/SGD is around 1.27260 which is touching a level not seen since the 6th of July and opens the door to consideration of lower depths being challenged.
Global markets which have been choppy recently have once again shown better behavioral sentiment. Risk appetite appears to have made stock indices attractive The trade deal announced between Japan and the U.S yesterday threw some fuel onto speculative fires. The USD/SGD is clearly back within the long-term lows it has been traversing and its bearish trend remains rather intriguing.
1.27000 and Questions About Ambition
The USD/SGD did challenge the 1.27000 level in early July. Perhaps this price is outlandish as a target for day traders, but it is not unreasonable to consider that financial institutions may be keen on trying to retest this level. The near-term is likely to remain within the grip of large players who may be optimistic about outlook. Yet, it needs to be considered the U.S Federal Reserve lurks next Wednesday and this may provide some headwinds.
The USD/SGD downturn which resumed with solid price velocity, essentially began on the 17th of July when the currency pair had climbed to around the 1.28800 level and began its descent. Since then incremental selling has taken place and support levels have proven vulnerable. The 1.28000 level was penetrated lower this Tuesday and has sustained its downwards trajectory. The 1.27500 was momentarily tested below earlier today.
Support Levels and Near-Term Wagers on the USD/SGD
The resumption of selling in the USD/SGD correlates to the broad Forex market. The Singapore Dollar is traversing within values – yes from late June and early July which is less than one month ago – but also within boundaries not seen since 2014.
- The ability of the USD/SGD to trend lower has been significant and betting against the momentum in the near-term feels contrarian.
- Traders tempted to look for more downside may be making the logical wager, if they choose to use slight upticks to ignite selling positions which seek reversals lower.
- Speculators should not get overly confident and look for targets that are attainable with a quick hitting approach.
- As the Federal Reserve lurks next week and tariff talk promises to be heard from the U.S White House, traders are advised to remain cautious.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.27695
Current Support: 1.27620
High Target: 1.27780
Low Target: 1.27450
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