USD/SGD Analysis Today - 01/10: Choppy Moves After Lows

(MENAFN- Daily Forex) The USD/SGD has seen some short-term upwards movement develop, but this has happened after the currency pair touched deeper lows on Friday of last week.

• The USD/SGD exchange rate is near the 1.28640 ratio as of this writing.
• Buying has ben seen in early trading this morning but this has taken place after lows on Friday challenged the 1.27900 level.
• Monday's trading also sustained the deeper depths of the USD/SGD.
• The currency pair remains entrenched within long-term lower values not seen since 2014.

Day traders looking for a simple selling position which follows the existing trend need to understand reversals do happen in Forex. The USD/SGD has delivered a sincere bearish run and its ability to cascade through support and create lower momentum have been fabulous, but the selling is still punctuated by reversals higher time to time.

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The U.S will be releasing jobs numbers this coming Friday and all financial institutions are positioning for the results. The U.S Federal Reserve has stated it intends on being dovish, the interest rate cut in the middle of September of 0.50 basis points certainly confirmed the outlook of large traders. The USD/SGD has factored more dovish action from the Fed this coming November.

However, no one is certain about how much the Fed will cut its Federal Funds Rate on the 7th of November. Will it be by 0.25 or 0.50 basis points? The USD/SGD which has moved to long-term lows has apparently taken a breather, and the choppy demonstration of values since yesterday is not a surprise. The current ratios which still appear quite comfortable below the 1.29000 level is an indication bearish sentiment remains in the USD/SGD. The question for traders is if and when the USD/SGD will resume it stronger bearish trend. The near-term is likely going to produce sideways price action/SGD Impetus and Coming Attractions

In order for the USD/SGD to fall lower additional economic impetus will have to be seen from the U.S which would include weaker U.S Non-Farm Employment Change numbers this coming Friday. Until the jobs data is published day traders should expect that the current technical realm of the USD/SGD is going to be tested.

• Trading over the next couple of days is likely to be fast and reversals will be seen.
• The 1.28000 to 1.29000 range looks like an easy area to point towards, but if the USD/SGD can sustain prices under the 1.28750 level this would be an indication financial institutions believe lower depths are possible.
• Caution will rule the USD/SGD over the near-term, Friday's U.S data release will ignite volatility.

Singapore Dollar Short Term Outlook:

Current Resistance: 1.28700

Current Support: 1.28605

High Target: 1.28850

Low Target: 1.28460

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