Although the USD/SGD has come off highs produced in late trading, the currency pair remains within sight of important mid-term resistance.
The USD/SGD is near the 1.34925 ratios as of this writing after reversing lower. After hitting a high of nearly 1.35430 about eight hours ago, the USD/SGD has shown the ability to create a bit of selling. However, the recent run higher in the USD/SGD which picked up additional power on Friday has put the currency pair directly within sight of mid-term highs. The ability of the USD/SGD to touch the 1.35600 to 1.35700 ratios has been demonstrated in March and May of this year.
The USD/SGD is technically challenging because perspective will depend on the timeframe a trader decides to use. The recent moves higher in the USD/SGD and its sustained trading above the 1.34000 level has been rather solid since the middle of May. Behavioral sentiment which believes the U.S. Federal Reserve may have a couple of more interest rates to be delivered, and a floundering economy in China is likely the impetus for the cause of the USD/SGD to remain rather highly valued the past month.
Late last night’s high in the USD/SGD and sudden selloff are reminders that volatility lurks for speculators who want to gamble on the short-term direction. Trends within the USD/SGD have turned into rather stormy affairs and predicting accurately the timing of changes in momentum in the short term is difficult.
- The CB Consumer Confidence, Core Durable Goods Orders, and New Home Sales data will be released from the U.S. today.
- Traders should keep their eyes on the CB Consumer Confidence number, because if American shoppers remain optimistic this may force the U.S. Federal Reserve to exert another interest rate hike in late July.
- If U.S shopper keeps their pocketbooks open and continues to spend without regard to inflation, the Federal Reserve may feel it has no alternative except to raise the Federal Funds Rate again.
The continued move upward in the USD/SGD has been evident in the past month, but it has not been easy to take advantage of for day traders. A strong dose of patience is recommended for cautious traders, while perhaps allowing the USD/SGD to come down to perceived technical support levels and then igniting buying positions looking for upwards momentum is a solid tactic. The USD/SGD looks rather comfortable trading between the 1.34100 to 1.35300 levels over the past month with some outliers. Traders should be conservative and be willing to look for limited movements and use take profit orders that can cash profits out before they vanish into thin air in volatile conditions.
Current Resistance: 1.35025
Current Support: 1.34890
High Target: 1.35575
Low Target: 1.34785
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