The USD/SGD’s long term bearish momentum appears to be is serious jeopardy today as buying momentum has arisen and resistance levels have been decimated. The upwards move in the USD/SGD has possibly caught bearish traders off guard as the forex pair exploded through the 1.34400 resistance level with power.
The current price of the USD/SGD is challenging early November 2020 highs and speculators should keep their eyes on the 1.35000 mark above. Technically the current broad forex marketplace is proving dangerous for short term bearish traders who rely on the use of large amounts of leverage to try and create breathtaking profits. The abrupt climb of the USD/SGD has been caused as financial institutions react to the freshly approved stimulus legislation in the US which has earmarked over 1 trillion USD to boost the American economy.
Because of the impetus spending bill from the US government, the USD bond market has reacted swiftly as investors make bets on interest rates. What speculators need to understand is the current tsunami within the forex markets may subside sooner rather than later, and if patience is practiced along with a conservative amount of leverage, wagering on a turnaround in the USD/SGD could produce worthwhile results.
The past two weeks of trading have demonstrated that even relatively calm forex pairs like the USD/SGD can be vulnerable to fundamental changes in sentiment. However the question speculators need to gauge is if the rather strong move in the broad markets is a reaction which will cause a long term change of trading philosophy or a short term gyration which can be overcome. Traders who use solid risk management may actually find an opportunity to take advantage of the rather lofty mid-term heights the USD/SGD is exhibiting currently.
Speculators with a strong amount of willpower and fortitude may be inclined to attempt selling positions of the USD/SGD within its current price band. Conservative Traders may want to wait until the American markets open and digest the news from late last week and this weekend regarding the stimulus bill which was approved. However, selling the USD/SGD on small climbs within the nearby resistance junctures of 1.34780 to 1.34800 could be appealing if they are touched with a target below near the 1.34600 to 1.345000 ratios as a focus for take profit endeavors.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.34780
Current Support: 1.34500
High Target: 1.35002
Low Target: 1.34270
