USD/SGD Analysis Today - 26/12: Highs Tested In FX (Chart)

(MENAFN- Daily Forex) Trading volume will remain very low in the USD/SGD today, but Asian banking is working which is allowing for some movement in the currency as it traverses near long-term resistance.

• The USD/SGD is around the 1.35955 ratio as of this writing.
• The global Forex market is extremely quiet with the holiday season officially in full swing. However, some localized trading is certainly taking place in Asia with Singapore being among them.
• The USD/SGD is within the higher elements of it range and its near marks seen in April of 2024.

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Behavioral sentiment remains fragile in Forex and the USD/SGD has correlated to the broad market. Speculators who insists on participating in the currency pair today will need patience, but also need to be prepared for sudden fluctuations which may not make a lot of sense. Traders need to understand most financial institutions are shuttered and not making transactions today/SGD 1.36000 as Key Resistance

Round numbers are important in Forex, and the 1.36000 level above for the USD/SGD is in sight and certainly in focus. While most financial institutions remain away from the Forex market, traders need to understand programed systems are keenly aware the 1.36000 is viewed as important resistance. The USD/SGD did trade above this ratio this Tuesday, and last week on Wednesday, Thursday and Friday before seeing a reversal lower which took the currency pair to a depth near the vicinity of 1.35300.

The USD/SGD does appear to be in overbought territory, but then again the entire Forex market including most major global currencies are doing poorly against the USD. Last week's Federal Reserve rhetoric which sounded overly cautious regarding future interest rate cuts made the USD stronger. 1.36000 may work as a magnate today and tomorrow USD/SGD Considerations

Fighting the trend upwards in the USD/SGD exchange pair have likely been painful for many USD/SGD traders. On the 2nd of October the USD/SGD was near the 1.29100 mark. The climb higher has happened based on global concerns about U.S Fed policy, but mostly because financial institutions remain unclear about the Trump Effect on U.S economic conditions including international trade.

• USD centric strength has taken place because of risk adverse sentiment and this is not going to subside immediately.
• Traders in the near-term need to understand the dangers of speculating in Forex when light volumes are dominating.
• Retail traders need to understand their Forex positions are not affecting the market even in these ultra-light conditions.
• The USD/SGD will likely experience choppy conditions into the weekend. And trading next week will remain very quiet.

Singapore Dollar Short Term Outlook:

Current Resistance: 1.36020

Current Support: 1.35910

High Target: 1.36190

Low Target: 1.35810

EURUSD Chart by TradingView

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