USD/SGD Analysis Today - 02/07: Higher Trend, Speculation
(MENAFN- Daily Forex) The USD/SGD has traded slightly higher since yesterday and is challenging resistance levels within its near-term technical charts, but traders need to be skeptical.
As the USD/SGD trades near the 1.35835 mark early this morning, this after the currency pair was touching the 1.35400 level early on Monday, traders should be rather suspicious about what they are seeing taking place on their trading screens. The price range of the USD/SGD trading pair has been rather strong the past week, this as the currency pair has traversed higher and attained a monthly apex. However, if a trader takes a look at a three month range the USD/SGD clearly remains under the heights seen from the middle of April until early May.
The USD/SGD is challenging upwards resistance, but traders should be rather suspicious of the moves. U.S economic data continues to come in weaker than expected from growth and manufacturing sources. Inflation has remained stubborn, but it is also showing some signs of erosion. The belief that the Federal Reserve will have to react to the weaker U.S economic numbers might seem like a speculative outlook, but it may prove to be correct. Yet, the USD has remained rather strong. So the notion of financial institutions wagering on a weaker USD outlook certainly hasn't taken hold quite yet Speculation and Holiday Trading
Day traders must remain cautious regarding the values being displayed in the USD/SGD today and certainly tomorrow. The U.S will celebrate its Independence Day holiday on Thursday, but it is an open secret trading volumes are light and by late Wednesday will start to disappear completely. It might seem hard to imagine volumes dropping off so much that imbalances happen in Forex in the first week of July. But traders should almost treat the results they are seeing like the numbers generated during the Christmas week and the New Year's holiday.
Canada had a holiday yesterday; the U.K is having an election this Thursday too. Meaning major Forex houses are absent and offices will be quiet. While the USD/SGD has traversed higher, it would not be a surprise to start seeing some selling taking place by those who believe the currency pair has moved too high. But the question is if enough folks will be in their offices over the next two days to accomplish this task.
Top Forex Brokers
1 Get Started 74% of retail CFD accounts lose money
U.S Jobs Numbers and a Quiet Financial World
U.S jobs numbers will be published this Friday and have an effect, but again the light trading volumes may mean results have to be viewed suspiciously. Short-term traders should use technical charts while understanding because of lower volumes the results may not meet their outlooks and set up the USD/SGD for a lot of volatility next week.
Resistance around the 1.35900 would seem to appear rather high, but nevertheless it could be tested. Traders should be on the lookout for odd spikes over the next day and then be prepared for reversals to occur. The 1.35700 to 1.35600 areas for the USD/SGD may be a place sellers' look to cash out bearish positions over the next couple of days.
Singapore Dollar Short Term Outlook:
Current Resistance: 1.35880
Current Support: 1.35750
High Target: 1.35940
Low Target: 1.35610
Ready to trade our daily forex forecast ? Here are the best forex platforms in Singapore to choose from.
MENAFN02072024000131011023ID1108399811
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.