The USD/SGD has been able to sustain near-term lows, and as of this writing is around the 1.28775 level, this after trading at highs around 1.30000 briefly last Friday before the U.S jobs statistics were released.
Late last week the USD/SGD saw the 1.30000 mark challenged momentarily as financial institution allowed their fear to create more bullish action for the currency pair. Federal Reserve news regarding its lack of clarity were seen last Wednesday, and tariff threats made headlines on Thursday and Friday causing the USD/SGD to remain within the nervous highs it had started to attain in mid-July. However, job numbers that came in weaker than expected from the U.S on late Friday essentially shifting behavioral sentiment again.
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Let’s remember the USD/SGD was trading near the 1.27025 mark on the 1st of July. Upside price action at that lowest level was expected, but until the 14th of July the currency pair didn’t show much ability to trade above 1.28100. The long-term historical lows of the USD/SGD were clearly still in play. Yes, the currency pair started to climb in mid-July and saw choppy results, but on the 23rd of July the USD/SGD was back below 1.27400.
Near-Term Movement and Lower Price Trend
After touching lows again on the 23rd, the USD/SGD began to climb reaching its apex nervousness early last Friday. The USD/SGD touched value it had not seen since the middle of May. However, upon the lackluster jobs numbers from the U.S, suddenly reconsiderations were made about the outlook for interest rates from the U.S once again. Financial institutions clearly started to lean into the notion the U.S central bank may have to consider cutting the Federal Funds Rate sooner rather than later.
Singapore has shown that it is not truly concerned about tariff implications globally hitting the USD/SGD in a manner that would hurt the Singapore Dollar. The SGD has been one of the stronger global currencies the past handful of months and the USD/SGD remains within it historically lower price realm as of this morning’s trading.
Betting Conditions Remainder of the Week
Price action is once again attractive for those considering betting on lower values in the USD/SGD. Obviously reversals higher will be seen, but the question is, where does resistance in the near-term start to show that it is durable?
- Day traders may be nervous about wagering on lower realms and that is justified.
- A conservative technical trader will likely be happy trying to bet on short-term technical moves.
- However, the ability to sustain the lower elements of its range early this week suggests that financial houses may believe another dose of impetus may be delivered and allow the USD/SGD to break through current support levels near 1.28700.
- Until then the 1.27700 to 1.27800 range could find plenty of action too.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.28800
Current Support: 1.28710
High Target: 1.28890
Low Target: 1.28620
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