As the USD/SGD trades near the 1.28360 ratio in early price action today, day traders need to understand that bids and asks will be wider than normal over remainder of Monday. The U.S is celebrating its Labor Day holiday and because of this U.S financial institutions are shuttered and Forex volumes will be lower than normal.
The USD/SGD has traded slightly lower the past few days, but it is still operating within a known price range that speculators have had to wager since late May. Yes, there have certainly been tests of highs and lows, but financial institutions seem transfixed on the notion that equilibrium has been found. The USD/SGD is moving per the winds caused by shifting sentiment as outlooks remain uncertain about the U.S Fed.
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Weaker USD Centric Tendencies
However, as the USD/SGD continues to trade within known realms, the currency pair continues to ebb and flow towards what can be described as long-term lower values. The belief that the U.S Federal Reserve will have to lower interest rates in September has been widely accepted by the broad Forex market. The question is what the Fed FOMC policy will reflect on the 17th of September when they give guidance regarding their October stance.
The USD/SGD has found it difficult to sustain values below the 1.28000 mark since late July. Financial institutions may believe a weaker USD is accepted over the mid-term, but most large players continue to show signs that the USD/SGD needs more impetus to be sold off with stronger velocity. The U.S jobs numbers will be published this coming Friday and this will certainly play a role in near-term positioning with the USD/SGD.
Holiday Thoughts and A Game of Wait and See
Because of the U.S Labor Day celebrations, USD/SGD traders today should practice caution. It is likely that upon the return of U.S trading houses tomorrow that volumes will increase volatility and current lower values will get a real test regarding short-term sentiment.
· Traders of the USD/SGD today should be wary of possible reversals that may occur without little explanations.
· The 1.28000 target below looks to be far too ambitious for speculators today.
· Day traders who want to participate in the coming hours should look for quick hitting tactics.
· Using solid take profit and stop loss orders to guard against the possibility of awkward results until the USD/SGD tomorrow returns to regular volume is a solid decision.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.28380
Current Support: 1.28310
High Target: 1.28475
Low Target: 1.28225
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