USD/SGD Analysis Today 27/11: Faces Holiday Slowdown (Chart)
Date
11/27/2024 2:41:30 PM
(MENAFN- Daily Forex)
After yesterday's highs in the USD/SGD which tested marks last seen in early July of this year, the currency pair has managed to reverse lower and is near the 1.34350 ratio as of this writing. The momentum downwards after testing higher values the past few days of trading is important and perhaps indicates some nervous behavioral sentiment is starting to erode.
However, before a retail trader decides to pursue the USD/SGD for short-term endeavors a few fun facts should be considered. One, today's
Forex trading will begin to see limited transaction volumes grow later as U.S financial institutions start to close for the Thanksgiving holiday tomorrow. Trading tomorrow will be extremely quiet and Friday's movements will have to be treated with caution and suspicion. The U.S will release plenty of economic data today, but it is questionable if it will have any real effect/SGD Support and Sentiment
Sentiment among institutional traders remains nervous regarding outlooks. Loud noise has been prevalent in Forex and this has affected the USD/SGD as the looming President-elect Trump power surge becomes a reality. However, talk about the implications of tariffs is sparking fear and reactions in Forex that may prove to be false. The ability to come off highs this morning in the USD/SGD may show some financial institutions believe the currency pair has been overbought.
The support level of 1.34250 is certainly in view for traders, but technical speculators need to remember that volumes in the USD/SGD will start to erode significantly later today. Yes, the currency pair will see price action and possible large moves, but traders should not be overly ambitious regarding their targets in the short and near-term. Speculators should also be cautious, because large institutional players may sit on the sidelines even in Asia while their North American counterparts are on holiday, opening the door for sudden spikes that possibly will make little sense.
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The USD/SGD is still within the upper part of its range taking into consideration one and three month perspectives. The desire to trade against the prevailing trend higher may be high for some speculators, but they should be careful in the short and near-term because of the limited volumes which will be in the marketplace. Nervous sentiment is certainly still a factor in the USD/SGD – and maybe more than many currency pairs – because of the implications on Singapore if tariffs against China are truly undertaken.
However, there is the opposite side of the coin to consider too, perhaps the worst of fears and potential Forex contagion has been factored into currencies already. Perhaps the USD/SGD has been overbought and will start to react with bearish momentum. But again, short-term considerations and mid-term outlooks can look completely different. Traders need to be cautious the remainder of this week.
EURUSD Chart by TradingViewSingapore Dollar Short Term Outlook:
Current Resistance: 1.34485
Current Support: 1.34310
High Target: 1.34780
Low Target: 1.34250
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