The USD/SGD continues to trade in the lower elements of its long-term range the currency pair bounces along support levels which have been tested for nearly one month.
The USD/SGD is near the 1.28660 level as of this writing, this value is slightly higher than its price at this time last week. However, the USD/SGD remains in lower boundaries of its near, mid and long-term term ratios. Yesterday’s low around the 1.28450 vicinity did not challenge depths seen on the 26th of May. Yet, the USD/SGD has been bouncing up against current support levels via technical perspectives since the 5th of May.
Global trading yesterday via U.S equities started off nervously, but by the end of Monday an upwards trajectory was seen in the major indices and U.S Treasury yields ebbed slightly lower. Risk appetite seems to want to become more aggressive, but cautious behavior is causing financial institutions perhaps to remain satisfied with current conditions. Meaning price equilibrium in the USD/SGD will likely need additional impetus to move lower in an aggressive fashion and sustain deeper depths.
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1.28000 Level as Too Low for the USD/SGD
Traders need to remain focused on short and near term considerations. Mid-term outlooks remain murky for financial institutions, for the moment large players may simply believe current prices represent fair market value in the USD/SGD. Support targets from 1.28500 to 1.28400 may continue to attract attention, but day traders with limited funds should simply be looking for technical clues regarding momentum via support and resistance levels as they try to grab a few pips of value from changes in direction. Traders should not overreach regarding their price goals.
For the moment it appears that a steady trend higher or lower remains out of the question, this leaves the door open to the possibility of simply taking advantage of shifting winds stimulated by reactions to ‘acceptable’ USD/SGD values. The U.S will release Non-Farm Employment Change numbers this coming Friday, but it remains questionable how much of an impact the data will have on Forex.
Influence of Trump and Trade Talks
President Trump remains a chief influencer of behavioral sentiment in the global markets including Forex. The USD/SGD is being affected by interpretations and rumors regarding a potential China/ U.S trade agreement.
Rhetoric remains tense and in the past couple of days it appears both sides have displayed tough stances again.
But signs of discord from China and the U.S may also be seen as negotiation tactics by financial institutions.
It is likely Singapore traders have pretty good insights regarding the outlook for a tariff agreement.
Perhaps that is one of the reasons the USD/SGD remains bouncing along near support levels and may continue to do so in the near-term as folks wait for a conclusion.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.28760
Current Support: 1.28620
High Target: 1.28850
Low Target: 1.28430
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