USD/SGD Analysis Today - 21/01: Reactive Range

(MENAFN- Daily Forex)

• President Donald Trump's ascension to the White House yesterday was a known circumstance since early November.
• The USD/SGD has seen a strong bullish trend since the change of power was decided upon.
• The USD/SGD was trading near the 1.31995 mark on the 7^th of November, essentially saying goodbye to the 1.32000 level and rising since then.

A high above the 1.37500 ratio was displayed on the 13^th of January, a mark not seen since October of 2023. The USD/SGD is around the 1.35965 mark as of this writing, having been able to come off highs but still showing that a battle of nervous sentiment is being waged. The USD/SGD sold off in early trading this morning, then jumped slightly higher. Traders should expect more volatility over the near-term. This as financial institutions try to digest the news flow which is coming from the U.S regarding trade and tariff implications.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money USD/SGD and Global Forex Conditions

The USD/SGD will be an important barometer in the days and weeks ahead regarding insights into global Forex conditions. The Singapore Dollar is an important component in Asian trade because of Singapore's international finance and commerce capabilities.

Behavioral sentiment which is nervous about the prospects of President Trump's threatened tariffs against China, also know that Singapore will be impacted by policies as they try to limit their exposure to financial risks via cash forward positions due to anxious outlooks.

The USD/SGD should be expected to be choppy in the near-term by speculators. The 1.36000 level will likely prove important today and tomorrow, and serve as inflection point. Traders should not get too tempted by thoughts of sustained downside opportunities quite yet. While it may look like the USD/SGD is overbought, risk adverse conditions have been seen for a reason – and those reasons are not about to disappear this week Opportunities in the USD/SGD

Price velocity should be monitored in the USD/SGD carefully short-term, it could prove dangerous. The return of U.S financial institutions which were absent from yesterday's Forex markets will be an impetus. It is likely caution via large players in the USD/SGD will remain abundant.

• Technical support levels which are perceived may prove to be opportunities to look for upside.
• However, resistance levels near the 1.36500 to 1.36600 ratios may also prove durable, this as folks try to create equilibrium as they sort through the existing nervousness in the marketplace.
• Now that Donald Trump is in power, although a known entity, questions persists about his next moves regarding tariffs as negotiations happen.

Singapore Dollar Short Term Outlook:

Current Resistance: 1.36040

Current Support: 1.35890

High Target: 1.36525

Low Target: 1.35830

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