The US Dollar is trading at 1.35 against the Singapore Dollar this morning, up 0.16% with a YTD return of 0.16%. The day range of the pair is expected to sit between 1.34 and 1.35, and the 52-week range between 1.34 and 1.46.
The recent bearish trading patterns have caused short-term traders to wonder if the growth over the last month was only a result of the US election and now the exchange rate is dealing with the aftermath. “Trading has remained fast in the USD/SGD and both support and resistance levels have proven magnetic from a technical perspective” according to DailyForex.
Whether this momentum can be sustained is the biggest question for USD/SGD. With the pair’s inability to break long-term support levels, traders are anticipating that the rate is expected to drop in the weeks to come.
“It may prove worthwhile for speculators to search for reversals higher and then to sell the USD/SGD. Looking for a selling target within the 1.34780 to 1.34830 may prove a solid speculative short-term endeavor.”
The last time the pair traded near the 1.34 level was in May 2018, USD/SGD is now challenging support levels which is a target that “has been proven to be difficult to approach but this is not a new development, the level certainly remains within the sight of speculative sellers.”
Traders may benefit from looking at a five-day chart to gain some insights into how the bearish trend of USD/SGD will continue to perform. Currently, the resistance level stands at 1.34800 and support at 1.34550 with a high target of 1.35020 and a low target of 1.34200.
Traders have been preparing for continuous fluctuation in USD/SGD; within the last three months, the pair had an exchange rate of 1.37 in late September then two weeks later on October 9th reached the mark of 1.35.
As the dust settles from the US election, the exchange rate of the pair has lost their momentum of the short-term bullish trends it’s demonstrated over the past weeks. “While the USD/SGD has challenged resistance and made targets look rather vulnerable, the forex pair actually is maintaining a rather bearish stance when viewed in the long-term perspective.”
By Surina Nath