USD/SGD Analysis Today - 12/11: Rocket Reversal (Chart)
Date
11/12/2024 2:46:31 PM
(MENAFN- Daily Forex) The USD/SGD returned to highs in early trading this morning which were seen last Wednesday following the results of the U.S election, short-term speculators will need to take a deep breath.
The USD/SGD is near the 1.33630 mark as of this writing with lightning quick price changes being seen. The currency pair in early trading this morning has climbed to heights it traversed after the election of Donald trump as President-elect became clear last Wednesday morning. The return to the highest part of the USD/SGD has a couple of factors that should be taken into account. The USD/SGD is trading near highs seen in the second week of August.
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Financial institutions remain nervous, but technical traders likely notice the USD/SGD is hovering near the highs seen last week and seem to be running into resistance. It will be important to measure if current resistance levels hold. Another part of the equation which should be factored into the USD/SGD trading this morning, is that American financial institutions were largely absent from the trading landscape yesterday because of a major holiday Dynamics in the USD/SGD
While traders who have a desire to try and short the USD/SGD at the current heights may find the currency pair is able to move lower, they should also acknowledge that short-term conditions are likely to remain choppy. Trying to catch a sustained move lower at this juncture would likely be a product of being lucky short-term. Near-term considerations however may be different. Because after the U.S financial institutions return to the markets today and potentially look for new equilibriums in the USD/SGD, tomorrow's coming Consumer Price Index numbers from the U.S could change mindsets.
The Federal Reserve did cut its interest rate on last Thursday by 0.25. However, the move was certainly overshadowed by behavioral sentiment which remains nervous regarding shifting outlooks in U.S White House administration under the leadership of President-elect Trump. Remember folks, Trump does not take official power until the 20th of January 2025. Federal Reserve policy will become important once again, and for the moment they will remain very cautious and try not to say much. Which leaves the door open to a couple of nervous months in Forex.U.S Data and Behavioral Sentiment in USD/SGD
The USD/SGD will be affected by U.S data via the CPI tomorrow and another inflation report this Thursday. If inflation numbers are lower than expected this could help the USD/SGD find some selling power, but traders still need to remain cautious. The highs being seen in the currency pair for the moment point to nervousness regarding Trump's potential effects on Asian trade.
Let's remember if Trump does start to ruffle the feathers of China that this could cause a reaction in Singapore which may cause financial institutions to be risk adverse and potentially keep the USD/SGD higher in the mid-term.
And mid-term outlook is likely quite nervous in the USD/SGD, which is causing short-term volatility.
Speculators may want to look at current support ratios as a place to look for quick hitting moves higher, but choppy conditions in the near-term will likely spark plenty of reversals Dollar Short Term Outlook:
Current Resistance: 1.33670
Current Support: 1.33570
High Target: 1.33775
Low Target: 1.33435
EURUSD Chart by TradingView
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