The USD/SGD is within its lower realms again and is near the 1.27680 ratio as of this writing, this as risk appetite has shown the desire to become more positive.
The USD/SGD has moved to lower realms once again. The currency pair as of this morning’s trading is near the 1.27680 ratio. The USD/SGD moved to a low around the 1.27600 realm on early Monday, this as a wave of optimism was clearly demonstrated in the financial markets in Asia. Financial institutions which were open on Monday were clearly positioning themselves based on the weekend news that a potential resolution is being developed between the U.S and Iran.
Even as cautious sentiment did come into the broad Forex market late Monday and certainly yesterday as volumes increased, the USD/SGD has not strayed to far away from its lower marks seen upon opening this week. The USD/SGD is traversing within territory that is in the middle of it one month range.
Technical Considerations in the USD/SGD
While behavioral sentiment generated because of the U.S and Iranian saga is certainly moving markets, the USD/SGD has shown a strong tendency to move lower when conditions appear to be more positive. The ability of the USD/SGD to remain below the 1.27900 in a sustained manner is noteworthy. And trading this morning has shown an ability to incrementally stay below 1.27750. The USD/SGD is correlating to broad Forex price action in which the USD has shown some weakness the past handful of hours.
Financial institutions are clearly watching news developments from the Middle East and although rhetoric has grown cautious, optimistic words are still being heard. If the price of WTI Crude Oil remains below 90.000 USD in the future markets this could prove to be an interesting development and show outlook is improving. However, swirling emotions in the broad markets and Forex are still a danger.
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Speculative Wagers on Lower Momentum in the USD/SGD
Because Monday was a low volume trading day due to European and North American financial institutions largely being absent from Forex, yesterday’s price action was a solid looking glass into the current sentiment being generated by large players.
Today and tomorrow will remain tactically cautious most likely as folks try to weight their near-term perspective with long-term outlooks.
However, the lower price action in the USD/SGD suggests that some additional momentum lower could be seen if another dose of positive sentiment is heard in the coming hours and days.
The 1.27600 mark may become a target of large players in Forex and it current values show the ability to remain below the 1.27700 level in the coming hours, additional impetus from the U.S in a handful of hours may create intriguing speculative wagers for lower values.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.27710
Current Support: 1.27650
High Target: 1.27825
Low Target: 1.27550
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