Superior broker technology provider since 2010
+1 (315) 675 1086 |

Move Lower as Sentiment Produces More Bearishness

Trading in the USD/SGD early this morning has continued to produce selling in the currency pair, seemingly as financial institutions demonstrate more bearish tendencies.

On the 7th of June, the USD/SGD was trading within sight of the 1.35000 ratios, having touched the 1.34975 mark. The past week has produced rather consistent selling in the USD/SGD since Wednesday, financial institutions are demonstrating a belief the U.S. Federal Reserve is going to deliver a message they want to hear. However, the seemingly overwhelming thought that the U.S. central bank will not increase its Federal Funds Rate tomorrow is not certain.

brokers-we-recommend Forex Brokers We Recommend in Your Region

See full brokers list see-full-broker


As of this writing the USD/SGD is trading near the 1.34050 level which is the low for the week via technical charts, but also a low that has not been seen since the 17th of May.  While short-term traders may be convinced more downside price action will come from the USD/SGD, a glance at a three-month chart of the currency pair shows values are still slightly within their higher realms. However, there is no doubt that selling has been dominating the past handful of days. And sellers may see present conditions as an opportunity, but they need to stay realistic.

Speculators and financial institutions alike may feel the USD/SGD remains in overbought territory and want to pursue additional selling positions.  Traders cannot be blamed for this outlook, but it could prove to be wrong, and today and tomorrow should be treated with a sincere amount of caution because the U.S. will deliver important inflation data in the next few hours.

  • Consumer Price Index statistics will come from the U.S. today. The inflation outcome will certainly affect the USD/SGD in the short term and may have an impact on the thinking of the U.S. Federal Reserve interest rate policy tomorrow.
  • Many traders seem to have positioned for no hike in the Federal Funds Rate from the U.S. on Wednesday, this may prove correct – but it could also prove wrong.
  • Risk management will be essential today and tomorrow.
  • Traders with weak stomachs may want to sit on the sidelines and watch the fireworks as they develop over the next day and a half. The USD/SGD like all other Forex pairs will grow increasingly volatile.

Traders who have been pursuing the USD/SGD lower have likely found good outcomes in the past few days. However, the near term is certain to become volatile, and even if the U.S. Federal Reserve doesn’t increase its interest rate tomorrow, fast conditions will definitely be seen because of the rhetoric the Fed is going to deliver. Traders need to be braced, and if they are tempted to pursue additional selling should remain cautious and fearful of sudden reversals higher knocking them out of trades if too much leverage is been used.

Current Resistance: 1.34290

Current Support: 1.34010

High Target: 1.34775

Low Target: 1.33865


Ready to trade our Forex daily forecast? We’ve shortlisted the best FX trading platform in the industry for you.

Leave a Reply

Your email address will not be published. Required fields are marked *

YourOwnBrokerage is a leading Technology & Business Consulting firm with a specialized focus in Fintech industry.

RISK WARNING: Trading products are highly speculative in nature and carries a significant level of risk which may not be suitable for all investors. Please ensure you fully understand the risks involved and only invest money you can afford to lose. Seek advice from an independent adviser if at all unsure as to the suitability of investing in such instruments.

The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.

The information on this website is not directed to residents of certain jurisdictions where such distribution or use would be contrary to local law or regulation.

© 2009 - 2024 All Rights Reserved.