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The USD/SGD has continued to move lower in early trading this morning showing an ability to sustain bearish selling which has shown recent signs of strength.
The USD/SGD is trading near the 1.34170 level as of this writing, which is a value that had last been seen on the 22nd of June. After touching a high of 1.35600 on the 6th of July the USD/SGD has produced solid selling. The downward momentum of the USD/SGD was displayed even as a higher than anticipated Average Hourly Earnings report from the U.S was published on Friday. Financial institutions have seemingly become comfortable with the notion the U.S Federal Reserve is likely to raise its Federal Funds Rate on the 26th of July.
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The USD/SGD traded above the 1.35600 in late March, late May and late June of this year, but then produced downturns. Intriguing support has been formed near the 1.34000 level several times during this mid-term duration. Technical traders will be able to see the USD/SGD has also traded below the 1.34000 ratio during this time. What may prove to be intriguing is the notion the USD/SGD remains near the upper part of its mid-term range.
While it may seem to fly in the face of the acknowledgement the U.S Fed is likely to raise interest rates again in late July, the USD/SGD seemingly has the capability of trading lower still. It is certainly a speculative notion and one that traders should not bet blindly on, but if support near the 1.34000 level begins to be challenged and shows that it is vulnerable, this could ignite additional selling in the USD/SGD.
- Day traders should be careful and remain realistic regarding their targets, but the USD/SGD does have a habit of producing sudden bursts of price velocity.
- If current support near the 1.34125 to 1.34100 begins to falter, this may produce an opportunity to test the waters for quick hitting moves lower.
- Financial institutions showed a rather strong backbone this past Friday when the USD/SGD did not produce a solid upwards momentum. The ability of the USD/SGD to selloff the past two days is intriguing.
The U.S will release inflation data on Wednesday and the following day of this week. The economic releases could fuel outlooks regarding the U.S Federal Reserve, but the notion that the Fed is likely to increase and this may have been built into the USD/SGD price already is worthy of consideration. Risk management should be used carefully, and traders looking to pursue downwards momentum should understand reversals higher over the near-term remain a danger.
Current Resistance: 1.34270
Current Support: 1.34125
High Target: 1.34860
Low Target: 1.33890
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