I like this pair to a point, but I also recognize that it is a slow-moving market quite often. A gradual climb is what I am looking for here.
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USD/SGD
It's been very choppy during trading here on Monday in the US dollar Singapore dollar currency pair, which probably isn't a huge surprise because, quite frankly, there's so much in the way of uncertainty out there right now that traders really seem to have issues knowing what to do.
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And with the noise in the Middle East continuing to be a major driver, I think it's a situation that we are essentially stuck with. With this being the case, I'm watching this very closely. I recognize that the 50-day EMA near the 1.2875 level remains important, and if we continue to see that hold as support, then I think eventually we will find our way higher.
Technical Support and Interest Rate Drivers
Interest rates are rising in the United States, and that in and of itself could be a major driver of where this pair goes because higher interest rates should mean a stronger US dollar, but we'll have to wait and see.
Ultimately, I do like this pair to the upside going towards the 1.30 level, but I recognize it tends to be very noisy and choppy and isn't exactly a high flyer when it comes to momentum. That doesn't mean that I want to get short; it just means that you have to be patient.
The 200-day EMA is currently at the 1.2858 level, and that's an area that, if we were to break down below there, then I would have to reconsider the entire situation. Ultimately, this is a market that I think will continue to see noise, but I think there are plenty of buyers underneath willing to get involved.
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