USD/SGD Analysis Today - 23/07: Higher Ground (Chart)


(MENAFN- Daily Forex) Although the USD/SGD has traded higher the past handful of days, the currency pair remains in polite lower territory when a one month chart is glanced.

  • Last Wednesday around this time the USD/SGD was trading near the 1.33925 mark, which was a low not seen since the third week in March.
  • Yes, the USD/SGD has traversed higher in the past handful of days, but its upwards price action has not been violent.
  • While U.S economic data has remained rather weak which spurred on USD/SGD selling into the middle of last week, the past couple of days have seen some events unfold which may be causing nervous sentiment and some buying momentum in the short-term.

China lowered their borrowing rates in order to try and spur on some economic impetus, this will have an affect on the Singapore Dollar. And Joe Biden has announced he will not seek a second term as U.S President, this may have caused some cautious behavior from financial institutions also yesterday. However, both these events may prove to be rather short-lived considerations, U.S economic data is set to prove important again in the coming days. The USD/SGD is trading near the 1.34525 mark as of this writing.

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While traders who have a bearish opinion of the USD/SGD mid and long-term may be watching the price action of the currency pair and resting relatively easy. The recent move higher in the USD/SGD the past handful of days may be causing problems for short-term speculators who also have a bearish perspective, but experienced traders know that reversals are part of the Forex landscape.

The important thing for short and near-term wagers is to judge selling and buying momentum based on technical perspectives and making sure they are not stepping into a trade that will become vulnerable to developing impetus which was unexpected. The USD/SGD has gained over the past few days, and it is approaching important resistance considerations. Currently the 1.34600 level appears to be an important barrier and if it remains durable this may indicate selling sentiment lingers within financial institutions who are waiting on U.S economic data of U.S Data Coming this Week

Forex has seen the USD get weaker over the past couple of weeks, but recent price action within the USD/SGD and other major pairs has seen some reversals occur as selling may have been perceived as overdone. The USD/SGD remains in the lower elements of its one month chart and resistance should be watched carefully.
  • U.S housing numbers will be released today, tomorrow manufacturing readings will be seen, but on Thursday important GDP numbers regarding U.S growth will be presented and on Friday inflation data from the PCE Price Index will be published.
  • If Thursday and Friday's U.S statistics are weaker than anticipated this could help USD centric weakness build.
  • Until then USD/SGD should expect a test of the known price range.
  • It will be interesting to see if downwards pressure develops before the critical U.S data on Thursday, which might suggest financial institutions believe selling will build momentum.
Singapore Dollar Short Term Outlook:

Current Resistance: 1.34570

Current Support: 1.34505

High Target: 1.34655

Low Target: 1.34380

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