USD/SGD Analysis Today - 03/09: Reversal Upsurge (Chart)

(MENAFN- Daily Forex) The USD/SGD has continued to show a short-term bullish track upwards after touching a low last Thursday that traded near the 1.30035 ratio.

• Having demonstrated the ability to stage a large bearish cycle from late June into last Thursday and achieving a low of nearly 1.30035, the USD/SGD has reversed higher.
• Speculators need to be careful. As of this writing the USD/SGD exchange rate is near the 1.30885 level which is a fairly reasonable move higher, but not one that should suddenly make traders believe that a mid-term bullish trend is about to emerge.

Instead, what happens next is likely going to prove a rather speculative few days of trading leading up to the U.S Non-Farm Employment Change numbers. The USD/SGD is still within the lower confines of its mid-term range in a rather healthy manner. Choppy trading should be expected to continue into Thursday and early Friday of this week as financial institutions position their commercial papers before the U.S economic data.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money USD/SGD and the 1.31000 Level is of Interest

Simple value levels remain a key ingredient for Forex speculation. Day traders and financial institutions both react to numerical behavioral sentiment generated by price ratios which signal clear resistance. The 1.31000 level will prove intriguing as a resistance level in the near-term. The ratio in not exactly close, but the 1.31000 is within sight and since penetrating this value below on Monday of last week the mark has clearly represented a rather durable resistance barometer. Yes, there have been outliers above the 1.31000, but most trading has been below the ratio.

Having achieved a significant bearish trajectory over the mid-term and having exhibited solid price velocity lower since the middle of August, financial institutions may be taking a breather with the USD/SGD as they ponder equilibrium. The U.S holiday yesterday brought light trading volumes, and as today progresses U.S financial institutions will return fully to the Forex realms, meaning the USD/SGD will get tested Speculative Considerations for USD/SGD

The lower realms of the USD/SGD having now produced a slight reversal higher will certainly get the attention of speculators. Before they perceive the USD/SGD has been oversold in the short-term, traders should acknowledge financial institutions are likely waiting for an additional bit of impetus to from weaker U.S data to sell the currency pair in mass.

• The price value of the USD/SGD is challenging long-term support levels and this may create a slowdown in the momentum lower short-term.
• The U.S jobs numbers will be important on Friday and until then traders should expect potential whipsaw conditions which are hard to find lasting momentum.
• 
  If the jobs data is weaker on Friday from the U.S the USD/SGD could retest lows and beyond, but until the numbers are known current values will likely be a testing ground for sentiment.

Singapore Dollar Short Term Outlook:

Current Resistance: 1.30935

Current Support: 1.30820

High Target: 1.31050

Low Target: 1.30690

Ready to trade our daily forex forecast ? Here are the best forex platforms in Singapore to choose from.

MENAFN03092024000131011023ID1108632380