Yesterday’s low in the USD/SGD touched the 1.27415 vicinity early in the day, which was above the lowest depth seen on Monday when the 1.27245 ratio was flirted with briefly. After yesterday’s higher low the USD/SGD mounted a climb towards the 1.27855 vicinity before seeing some lower price action. This morning’s early Forex trading has been rather consolidated compared to the past handful of days and the current USD/SGD mark is near the 1.27725 ratio.
Sentiment in the broad Forex market and the USD/SGD has begun to have a cautious display, and this was before today’s rather tight outcomes thus far. Support and resistance levels the past handful of days have been rather polite considering the amount of anxiousness that is still being seen in the global marketplace. The USD/SGD has been able in many senses to maintain its lower stance, but upside price action based on reversals upwards have lent themselves to opportunities for traders.
Nervous Sentiment and Energy Costs Impetus
Perhaps financial institutions are getting used to the current state of affairs in the energy markets and have digested that prices in Crude Oil are not about to become significantly lower. The Middle East situation continues to make news, but it is the economic implications which are factoring into the broad Forex market, and the USD/SGD is at the forefront of this development. Singapore remains one of the biggest trading hubs in commerce and its financial institutions are certainly dealing with a lack of clarity regarding economic outlooks for Asia as the price of energy escalates and they transact business.
However, the USD/SGD has been able to produce a rather stable realm. Today the U.S Federal Reserve will announce its FOMC decisions, but no change is expected to U.S interest rates. The USD/SGD may move slightly as Fed Chairman Jerome Powell talks, but financial institutions are more keen to see if the price of WTI Crude Oil remains at highs.
USD/SGD Near-Term Wagering Factors
Day traders know they should not get too comfortable regarding current Forex conditions. The USD/SGD has provided a rather practiced range, but impetus via sudden news could shake results.
The 1.27560 value line looks to be a testing ground near-term for lower price action technically.
But traders should not get overly ambitious, and they should try to take advantage of the tight band which is being demonstrated for the moment with cautious wagering.
Because of the current events taking place in the Middle East speculators are urged to maintain strict risk management to guard against surprises in the near-term.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.27770
Current Support: 1.27710
High Target: 1.28880
Low Target: 1.27590