Day traders looking at the current price action of the USD/SGD will likely be gauging its value with the broad Forex market and wondering about the positive sentiment being seen now. As of this writing the USD/SGD is near the 1.27190 and has near-term depths in sight. Intriguingly even as President Trump announced a further deescalation in the Iranian war late on Tuesday, it appears some financial institutions are behaving rather cautiously in the USD/SGD. And this is probably a wise decision based on Trump’s ability to shift his rhetoric in any direction without warning.
Yet there is strong technical intrigue regarding the USD/SGD’s ability to sustain lower price action for the time being, and the thought that an additional push lower could be seen in the coming hours. On Friday of last week the USD/SGD flirted with the 1.27000 mark and speculators are probably enticed by the idea this will happen again.
USD/SGD Lower Values Attractive but Caution Needed
Financial institutions in Singapore are highly advanced regarding their ability to trade Forex, the lower values of the USD/SGD are interesting because even after this latest round of what is largely considered positive news regarding the Iranian war – particularly for Crude Oil prices which have move lower this morning – the USD/SGD while moving lower hasn’t done so with great velocity. Why is cautious selling behavior being seen in the USD/SGD trend and stronger velocity lower missing?
Other major currencies have gained against the USD in larger fashion. Perhaps we are merely looking at the wrong thing. Maybe financial institutions trading in the USD/SGD beforehand had already factored President Trump’s reversal in rhetoric which took place last night. Looking for lower values in the USD/SGD is tempting to wager on, but risk management must be sufficient because there are technical signs via short and near-term charts behavioral sentiment from USD/SGD are suspicious.
Speculative Lower Price Action Attractive
Nothing is guaranteed in Forex trading. The lower price movement in the USD/SGD has certainly been seen – that is a fact. But some traders are likely wondering why the downwards action has not been stronger.
Day traders can certainly wager on more selling in the USD/SGD, but they need to remain realistic and be willing to cash out profits when they materialize.
The 1.27000 feels like a legitimate target, but first greater momentum must push through the 1.27170 to 1.27150 marks and sustain selling action.
The lower depths of the USD/SGD seen in the past week and month will attract more sellers of the USD/SGD as current circumstances stand, but risk taking should be done with care.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.27250
Current Support: 1.27180
High Target: 1.27330
Low Target: 1.26970