The Singapore Dollar has consolidated the past day and still lingers near crucial support levels. The 1.37750 mark is remarkably close but has not been challenged. Resistance levels up above also have not seen much of a battle. Speculators within the USD/SGD may be able to take advantage of these tight ranges and look for scalping opportunities. However, to achieve worthwhile results – meaning profitable outcomes – traders need to be extremely proactive and attentive.
The government of Singapore released their unemployment data today and while jobless numbers in the nation are a concern, the overall percentage of unemployment remains low compared to other countries. The concerns however expressed from analysts suggest that new job creation will be difficult to attain, which is certainly a cause for worry as the unemployed seek work.
The consolidated trading of the Singapore Dollar should not fool traders into a lull. Forex markets seldom stay tranquil for long. The USD/SGD is a rather comfortable forex pair but the tight range will likely be only short term. The past five trading sessions have produced a range between the 1.37620 to 1.38740 levels.
Which highlights speculators who are attempting to merely scalp the USD/SGD could be in for surprises when the pair starts to fluctuate again. This period of consolidation will disappear soon and traders should instead position themselves according to what their technical perceptions are interpreting. The important question is if the bearish trend which has been a factor the past month of trading will maintain its overall pace. Risk appetite globally remains a driver within the markets and sentiment regarding the US Dollar also accounts for a huge amount of the direction generated in forex pairs.
One important clue is the observation that resistance levels have incrementally decreased the past couple of weeks. If current resistance junctures hold and the USD/SGD continues to reverse off of higher ground when it is attained, speculators should contemplate selling the US Dollar against the Singapore Dollar further.
The USD/SGD has mirrored other major forex pairs and this correlation will not end soon. Selling the USD/SGD within a range of 1.378500 to 1.37900, placing stop loss ratios above and searching for downward momentum to develop cannot be faulted.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.38000
Current Support: 1.37775
High Target: 1.38100
Low Target: 1.37600
