USD/SGD: Higher Speculative Price Realms Remain In Sight

(MENAFN- Daily Forex) As of this writing the USD/SGD is near the 1.36760 mark which is within sight of the higher prices the currency pair touched on last Thursday when the 1.37000 level was approached. Intriguingly from a technical perspective, the USD/SGD hit a low around the 1.35985 mark on Wednesday of last week. The known price range of the USD/SGD has produced a rather consistent reflection of the broad Forex market.

Risk sentiment remains fragile in the global markets, and the USD/SGD has continued to climb upward like most other major currency pairs where USD strength is being exhibited. The strength of the USD is coming from risk-adverse behavioral sentiment which is generated due to higher energy costs which is causing worries about higher inflation, among other reasons. This has put the U.S. Federal Reserve into an uncomfortable spot, and the U.S. central bank essentially said last Wednesday they are strongly considering another interest rate hike in November.

The nervous trading conditions have given the USD/SGD a rather solid base of support. While many traders may believe the USD/SGD is overbought at these higher levels, it should be remembered the currency pair was trading at much greater heights from April of 2022 until November of last year.

This doesn't mean the USD/SGD is going to surge towards marks of 1.44000, but it does remind traders that nothing is etched in stone, and outlooks about where the price of the USD/SGD should be do not equate to what the actual market price. The market is always right and day traders are particularly vulnerable to this reality.USD/SGD Resistance and Nervous Trading Conditions

USD/SGD nervous trading conditions are likely to continue in the short and near term. Resistance levels are likely to be challenged and if the 1.36800 level is penetrated and prices are sustained above this would be another signal financial institutions remain buyers.

• The U.S. will release its CB Consumer Confidence reading today, and on Thursday Gross Domestic Product numbers will also come from the States.
• If these two reports are stronger than expected this could lead to more strength in the USD/SGD based on the notion traders will worry about U.S. interest rates remaining high for a longer time than previously estimated.

Speculative Attraction of the USD/SGD via Trend

The upward trend in the USD/SGD has been strong. Yes, reversals lower certainly do take place, but until there is a shift in behavioral sentiment, speculators may feel attracted to the pursuit of upside price action. Traders should not be overly ambitious and the use of profits orders to capture profits is an encouraged tactic. Volatility in the USD/SGD may be produced for the whole of this week due to the economic data that will come from the U.S. which will show consumer sentiment and growth numbers.Singapore Dollar Short-Term Outlook:

Current Resistance : 1.36800

Current Support: 1.36725

High Target: 1.36990

Low Target: 1.36490

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