The USD/SGD has produced an intriguing amount of consolidation the past few trading days as momentum within the Forex pair has stagnated.
The long-term bearish momentum within the USD/SGD can still be seen via technical charts, but speculators may be questioning where the next wave of strong direction will be generated. The past few days of trading have seen consolidated values for the USD/SGD. Yes, the Forex pair remains within the depths of long-term lower values. However, the current support levels the USD/SGD is trading have produced rather interesting reversals higher on occasion which may tempt contrarian speculators.
Traders do not have to believe there is only one direction in speculating to pursue their wagers. While it is important to understand the underlying momentum of the USD/SGD, and any other Forex pair, the key information short-term traders need to decide upon is what is going to happen in the market today and tomorrow. The consolidated range within the USD/SGD which has been displayed the past couple of days may offer experienced traders a chance to take advantage of both sides – selling and buying.
While the current price of the USD/SGD straddles within a rather narrow price band, speculators may prove wise to simply use existing support levels as places to seek buying positions. On the other hand, traders can also become sellers when resistance levels are approached and appear stable. The support junctures of 1.32280 to 1.32230 could prove enticing for speculators who seek short-term buying positions. However, while pursuing short-term trades that are quick-hitting, traders also need to have stop-losses firmly in place.
Resistance near the 1.3240 to 1.32420 marks appear rather attractive as selling levels too for speculators who want to participate in cautious short-term positions. Traders may have to practice patience and wait for the support and resistance levels to be tested. Traders who believe firmly that bearish momentum remains the strongest feature of the USD/SGD may want to be more liberal with their take-profit targets while using tight stop-losses.
Downside action within the USD/SGD has been produced over the long term and this momentum may not be ready to cease. However, trying to pick and choose when the next serious wave of selling pressure will emerge within the USD/SGD is not easily predictable. Until the USD/SGD breaks lower support levels near the 1.32000 level and sustains values beneath this value, traders are advised to be pragmatic and pursue quick-hitting trades.
Singapore Dollar Short-Term Outlook:
Current Resistance: 1.32420
Current Support: 1.32280
High Target: 1.32590
Low Target: 1.32090