USD/SGD Analysis Today 28/01: Faces Volatility (Chart)
Date
1/28/2025 2:20:43 PM
(MENAFN- Daily Forex) The USD/SGD has been able to produce lows over the past handful of days, but trading action the past twelve hours has seen the currency pair resume some upwards movement.
The USD/SGD is trading slightly above the 1.35200 level as of this writing. At this time last week the currency pair was near the 1.35500 level and this followed higher realms which saw the 1.37000 ratios punctured upwards in the first and second weeks of January. Thus, the USD/SGD has been able to create some selling momentum. A low of nearly 1.34175 was seen yesterday.
But before speculators lean too heavily into selling positions with overly ambitious targets below, they need to remain vigilant and know that further agitation in Forex, including the USD/SGD is likely. The U.S Federal Reserve will release its FOMC policy tomorrow and no change to current interest rate costs will take place. However, President Donald Trump will have something to say about Fed policy and it may not be polite as he disagrees openly with the U.S central bank/SGD and Global Forex Conditions
The USD/SGD and other major currencies pairs teamed against the USD still have difficult days ahead. USD centric strength may be starting to erode, but reversals will certainly remain part of the landscape. The USD/SGD has traded above the 1.35000 mark consistently since before the Christmas season started. The 1.35000 to 1.34900 trading range has been a testing ground since the middle of November.
Downwards movement in the USD/SGD produced the past handful of days has developed as financial institutions have grown calmer. However, President Trump has not gone away and his talk about tariffs is certain to ratchet into a loud cascade near-term. Trump has set an end of January deadline for those he has targeted to negotiate or suffer the penalty of U.S tariffs. China is one of the nations that is going to have to deal with the U.S President. While this may not appear outwardly to have an immediate effect on Singapore and the USD/SGD, day traders need to remain aware of possible sentiment shifts being sparked in which could cause volatility.
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The move higher in the USD/SGD produced since yesterday's lows which tested the 1.34175 vicinity were important. The ability to move lower certainly shows that financial institutions believe the USD/SGD was in overbought territory, the selling seen tested depths last seen in the second week of December.
Buying which has been produced the past twelve hours and choppy conditions are part of the current circumstances in Forex which are being churned by loud rhetoric which is likely not going to disappear anytime soon. Outlook for the mid-term will often collide with short-term notions, the USD/SGD must be treated carefully today and tomorrow. Selling may feel logical, but it should be done with solid risk management. Also day traders need to understand volumes in the USD/SGD will grow thin because of the upcoming Lunar New Year celebrations about to come.
EURUSD Chart by TradingViewSingapore Dollar Short Term Outlook:
Current Resistance: 1.35290
Current Support: 1.35160
High Target: 1.35575
Low Target: 1.34870
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