The USD/SGD continues to provide a rather incredible bearish cycle, and long-term values from 2018 are now being potentially considered by speculators.
The 1.31100 is now being flirted upon by the USD/SGD. From a speculative perspective, the downward momentum the USD/SGD has provided the past handful of months has been nothing short of extraordinary. The selling power within the USD/SGD has hopefully pleased traders who have been pursuing the downward track with profitable outcomes.
Potential lower values for the USD/SGD now being considered likely include looking at five-year charts for some technical traders. The trend lower in the USD/SGD will certainly come to an end at some point, but betting against the strong downward motion may be like stepping in front of a train and hoping it stops when it is not scheduled for a rest. Important U.S. data will come via GDP numbers today, and tomorrow inflation statistics will be published.
USD/SGD Selloff needs to be treated with Realistic Targets
As the USD/SGD trades near the 1.31000 mark this morning, traders looking for lower targets should remain realistic and not reach for overly ambitious outcomes. Risk management is certainly needed and speculators need to acknowledge the USD/SGD still has the capability of reversing higher. The move lower in the USD/SGD has been quite strong. Taking into account USD/SGD values in the past, it is not wrong to believe the currency pair may start to find durable support at some point, picking the correct time that happens however could be challenging.
- If the 1.31100 support level is broken and values are sustained below, the 1.31050 to 1.31000 ratios will certainly be targeted by speculators.
- Due to the Gross Domestic Product data coming from the U.S in a handful of hours, the USD/SGD could see volatility develop. Price movement could prove to be dangerous because the currency pair is traversing near long-term lows, so speculators must be extra careful.
The 1.31050 Ratio is Attractive for Wagers but Risk Taking Tactics should be Cautious
Trading volumes in the SGD/USD are not full due to the Chinese New Year still being celebrated. Financial houses are working, but transactions are certainly not what they are typical. However, because of the growth and inflation data coming from the U.S. today and tomorrow, financial houses in Asia are certainly paying attention. The trend lower has touched upon long-term value depths and behavioral sentiment will be tested near-term.
Traders may want to continue to wager on downside movement until proven wrong. However, speculators need to be ready for potential reversals higher. The 1.31100 will be an important value today psychologically. If it is broken lower risk-reward questions will need to be considered, because the USD/SGD trading beneath this value has not occurred in nearly five years. However, the trend lower is there for all to see for the moment. Risk management should be cautious.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.31310
Current Support: 1.31050
High Target: 1.31675
Low Target: 1.30910
Ready to trade our Forex daily forecast? We’ve shortlisted the best Forex brokers in the industry for you.
