The USD/SGD has reentered bearish territory and is challenging important short-term support as the Forex pair readies for it next value fight.
The USD/SGD has produced a difficult month of trading for speculators the past month, but the Forex pair has now reentered bearish territory again with value below the 1.33000 mark. The important question for speculators is whether the USD/SGD can sustain its recent downward thrust and begin to challenge important prices below, or if it will suffer a reversal higher again.
The ability to break below the 1.33000 value early this morning was the first time the USD/SGD has accomplished the feat since the 1st of February. Prior to February, the USD/SGD was the recipient of choppy trading, but did challenge low water marks consistently. However, early trading this month has produced rather dramatic reversals higher and the high of 1.33900 on the 5th of February was a value not touched since the 21st of December. Because of recent trading results, speculators may feel rather hesitant about jumping aboard a vehicle that is yelling it is about the need to explore further bearish values.
Technically, the 1.33000 level should be watched carefully. The USD/SGD has proven that it has the capacity to trade above this value the past week and even challenge higher resistance junctures. Perhaps the correct mode of trading at this time is to be patient and wait for higher values to be seen and then activate selling positions via limit orders. However, if the USD/SGD does prove it has the ability to sustain its values below the 1.33000 mark, speculative bears may believe that the opportunity to sell the Forex pair is now and placing a stop loss nearby is the better decision.
If the USD/SGD is able to break through support near the 1.32860 level, this could prove significant because this ratio was last tested on the 31st of January. Any sustained trading below this support mark would indicate that a potential wave of bearish momentum may be ready to increase its momentum downward.
As late as the 26th of January, the USD/SGD was trading near 1.32620. However, it would be wise for traders not to target values which are rather faraway, but first focus on nearby support levels as potential marks regarding the potential direction of the USD/SGD if it continues to show ability to reignite its long-term bearish trend.
Singapore Dollar Short-Term Outlook:
- Current Resistance: 1.33070
- Current Support: 1.32860
- High Target: 1.33230
- Low Target: 1.32720