The USD/SGD has held onto the upwards movement it created before going into the weekend as Monday has started and may entice traders.
The USD/SGD is hovering near the 1.38000 level as of this writing. Before going into the weekend, the USD/SGD currency pair had been seeing plenty of price activity near the 1.37500 ratio, which was until U.S economic data via Average Hourly Earnings came in stronger than expected.
While technical traders may dismiss the price action as a natural move higher as support was proven durable, fundamental traders certainly will point to behavioral sentiment across Forex which shows the USD got strong in most major currency pairs at nearly the exact moment. The move higher attained on Friday was a spike upwards which touched the 1.38340 level briefly. It appears the USD/SGD currency pair may face rather choppy conditions moving forward this week.
Ride Upwards Mirrors Other Major Currencies as USD/SGD Climbs
The fact that the USD/SGD has essentially held its ground this morning and not reversed sharply lower, likely demonstrates nervous sentiment again is vast regarding the U.S Federal Reserve’s outlook regarding interest rates. On the 26th of July the USD/SGD was trading near the 1.39000 ratio, this before slumping to a low of nearly 1.374700 momentarily this past Friday. The incremental selling of the USD/SGD likely took place the past tend days because financial houses were counting on a less hawkish U.S central bank.
Friday’s data from the U.S turned Forex on its head quickly and the USD/SGD reversal higher suddenly brought the currency pair in sight of upwards realms. Yes, the USD/SGD could certainly reverse lower and traders should expect choppy conditions ahead this week as financial houses search for equilibrium, but behavioral sentiment may remain nervous about more interest hikes from the U.S than were expected only one week ago. If this proves to be the case the USD/SGD may continue to test the 1.38000 ratio and higher.
- Support near the 1.38000 should be watched closely for the USD/SGD currency pair in the short term. Durable support could spur on more buying of the USD/SGD as speculative perspectives look for more upside.
- Support near the 1.37500 if broken lower would be noteworthy, but may point to an oversold USD/SGD, which could create reversals higher near term.
USD/SGD Testing Higher Realms Again and Bulls may pursue Price Action
The USD/SGD will generate fast trading today. Last Friday’s spike higher will certainly be tested by speculators who believe the Forex pair has been overbought, but strong lower moves are likely to create buying opportunities. The USD/SGD may find durable support within the 1.37900 to 1.37650 sphere. Traders must be careful with the amount of leverage they use, and take profit and stop loss orders are urged.
Singapore Dollar Short-Term Outlook
Current Resistance: 1.38150
Current Support: 1.37850
High Target: 1.39090
Low Target: 1.37500
Ready to trade our daily Forex forecast? Here’s a list of some of the best Forex trading platforms to check out.