USD/SGD Analysis Today - 22/10: Cautious Sentiment (Chart)

(MENAFN- Daily Forex)

• The USD/SGD has continued to creep higher technically and is near values seen in the middle of August, this as global financial institutions have clearly started to become cautious as the U.S election approaches.
• In late trading yesterday and early today the USD/SGD touched highs around the 1.31700 level.

• 
  Financial institutions globally are becoming increasing careful regarding their trading positions and outlooks. The U.S election is two weeks away.
• 
  There is not much significant
  U.S date that will help propel impetus in the next few days, so the bulk of movement will likely come via positioning by large traders who are simply practicing caution.

Day traders of the USD/SGD may be inclined to believe now is a good time if they like to speculate via technical perceptions. The USD/SGD is touching higher values not seen in two months. The current value of the currency pair as of this writing is near 1.31520.

While that might look like overbought territory to many traders, the ability of the USD/SGD to create a higher price range the past week and a half is a warning sign that mid-term outlooks may have nothing to do with short-term worries.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money Day Trading and Short-Term Fluctuations in the USD/SGD

Traders need to understand that short-term fluctuations are taking place as financial institutions brace for the results from the U.S vote. Yes, the U.S will release important economic data next week, and this will create volatility too. The rather tight upwards momentum in the USD/SGD that has been demonstrated is likely going to turn violent, but this may not happen during this week which will allow a test of perceived support and resistance levels.

USD centric trading is going to intensify this week and into next week. Traders are encouraged to have quick hitting targets that try to latch onto technical momentum if it shows signs of sustaining. While the Singapore Dollar has been very strong over the mid-term, but recent trading highlights the nervousness that is being created and the USD/SGD forecast could continue to test upwards levels after support levels prove to be durable in the near-term Trading and the USD/SGD Short-Term

The ability of the USD/SGD exchange pair to trade higher yesterday and early today may feel like overdone buying, but it would not be surprising in the near-term to see highs tested once again. The consideration of trying to take advantage of the current price range and its potential to create a rather consolidated value band is tempting.

EURUSD Chart by TradingView

• However, traders need to understand that volatility is a constant danger.
• Support levels around the 1.31500 to 1.31450 should be monitored today.
  

Singapore Dollar Short Term Outlook:

Current Resistance: 1.31565

Current Support: 1.31495

High Target: 1.31630

Low Target: 1.31425

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