USD/SGD Analysis Today - 06/08: Facing Long Lows (Chart)

(MENAFN- Daily Forex) The USD/SGD managed to turn in another strong day of selling on Monday in the midst of global market chaos, and now the currency pair is within sight of long-term depths.

• The USD/SGD exchange rate is trading near the 1.32530 ratio as of this writing. Yesterday's selling added on to bearish sentiment which has been seen since the start of July.
• However, trading on Monday touched the 1.31900 vicinity before moving higher and to its current values.
• Selling in the USD/SGD has been strong since Friday and the ability of the currency pair to conduct its bearish trajectory as global assets in many places have been abused, highlights the solid reputation of Singapore financial institutions.

The USD/SGD reacted with selling last Friday when U.S jobs numbers were worse than expected. The USD/SGD did reverse higher yesterday after its low was touched that had last been seen in late December of 2023, but it did not move higher violently. Unlike many other major currencies yesterday as Japan markets suffered from irrational results, the USD/SGD kept a firm grip on what appears to be fundamental dynamics.

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The short-term could still produce a sudden unexpected reaction in the USD/SGD. However, if the near-term remains calms and the lower price realms now being challenged are maintained this will open the door to speculative prospects which will not be easy. The strong trend downwards in the currency pair had been awaited by many financial institutions who have believed the U.S Federal Reserve would be forced to cut interest rates this coming September and possibly November, which now appears likely.

Now that the lower price realms of the USD/SGD have been attained, questions concerning equilibrium – fair market price – will start to be asked by all traders and corporations dealing with the currency pair. Yes, the USD/SGD has traded lower and the 1.32000 level and lower was tested periodically in 2023, but day traders now must brace for the potential of the trend becoming less demonstrative. The USD/SGD could simply keep trading lower, but this is unlikely to happen in a definitive way's Slight Reversal Higher and Day Trading

Day traders may find that technical perceptions become important within quick hitting tests of USD/SGD value. While the U.S will produce limited economic data this week, most financial players will keep focused on the bloodshed yesterday in Japanese and U.S equities. Japan has staged a buying rebound today and the U.S may follow suit today. This may mean calmer markets will re-emerge.

• Obviously, things can change quickly, at the end of this week China will publish inflation data which will be looked at by Singapore Dollar traders.
• The near-term will produce a test of the current lower price range, and support and resistance levels may prove rather durable.
• If the USD/SGD does remain in the current depths of its mid-term range, this may indicate financial institutions are comfortable with current pricing.

Singapore Dollar Short Term Outlook:

Current Resistance: 1.32635

Current Support: 1.32475

High Target: 1.32830

Low Target: 1.32190

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