USD/SGD Analysis Today 05/02: Tests Support (Chart)

(MENAFN- Daily Forex) The USD/SGD has returned to support levels traversed on Thursday of last week, this after nervous sentiment in global Forex has eroded and allowed a glimmer of optimistic hope to simmer.

The USD/SGD is trading slightly below the 1.35200 level as of this writing with price action showing some downwards momentum. The USD/SGD touched the 1.37050 vicinity on Monday in wildly fast movement because of fears cascading into global Forex as tariff rhetoric reached fever pitch. financial institutions have become much more tranquil the past day and a half as some agreements have been reached and President Trump has postponed some potential sanctions.

Storm clouds in Forex are certainly still possible, but for the moment behavioral sentiment in the USD/SGD has calmed considerably. News that China and the U.S are negotiating too in the past day has also helped create more tranquil conditions. Suddenly the USD is near important support ratios seen last week in the USD/SGD and speculators have decisions to make.

Top Forex Brokers1 Get Started 74% of retail CFD accounts lose money USD/SGD 1.35000 Level as a Target

Traders who have believed the USD/SGD has been in overbought territory the past couple of months have certainly had their perspectives tested. Hopefully solid risk management has been used. However, traders who have been taking advantage of the nervous global conditions as strong USD centric price action dominated, now need to consider the possibility that the USD/SGD may be ready to see some bearish activity.

Certainly not all answers will become clear in the near-term, but President Trump has proven before that he is willing to negotiate with China. The USD/SGD certainly has plenty of skin in the game regarding U.S and China trade and tariff policy, because Singapore handles commercial transactions that involve resources, logistics and finance for both nations. If stability is generated it would help the USD/SGD potentially shed some of the cautious attitudes which have been seen via buying the past couple of months/SGD Volatility and Speculative Notions

Traders should not get overly ambitious, but if rhetoric stops being bombastic and the U.S White House and China appear to be talking in a positive manner, then the USD/SGD may find that risk premium that has been factored into the currency pair starts to subside.

• Targeting lower realms in the USD/SGD may be the logical wagering avenue for the moment.
• The U.S will release jobs numbers this Friday and other economic data will be seen before then, but behavioral sentiment is ruling the Forex landscape.
• The USD/SGD will see reversals via large commercial trading and speculators need to practice risk management, but looking for lower values to be seen as support perceptions are tested near-term may be correct.

EURUSD Chart by TradingViewSingapore Dollar Short Term Outlook:

Current Resistance: 1.35260

Current Support: 1.35125

High Target: 1.35310

Low Target: 1.34650

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