(MENAFN- Daily Forex) The USD/SGD is traversing around the 1.30560 ratio this morning. The currency pair touched a high of nearly 1.30860 yesterday.

The USD/SGD is back above the 1.30000 level and showing the ability to sustain the higher terrain since last Friday. Yesterday's high in the USD/SGD touched the 1.30860 vicinity, and this morning's price action has seen an incremental selloff bringing the currency pair to around 1.30550 as of this writing. The broad financial markets appear to remain somewhat cautious globally.

The USD/SGD was below the 1.29300 level as the U.S Federal Reserve was in the midst of announcing its anticipated interest rate cut last Wednesday by 25 basis points. However, the Fed's FOMC Statement wasn't received well by financial institutions who did not appreciate the uncertainty the Fed delivered regarding their upcoming December decision. The USD/SGD began to swiftly move higher and correlated to the broad Forex markets as USD centric strength emerged quickly.

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The USD/SGD is now within terrain it last traversed in the second week of May, this before the currency pair returned to lower values. However, the 1.31000 level above continues to look like it is rather durable resistance. The run higher in the USD/SGD yesterday after touching the 1.30860 mark certainly has seen rather consistent selling up to now.

The correlation of the USD/SGD to the broad Forex market is important. The Singapore Dollar is a solid barometer of financial institutions globally regarding their USD sentiment, in fact I would argue it often a leading indicator. The U.S Dollar Index is touching important mid-term resistance at this moment. This might create the notion the strength of the USD has been overbought, perhaps that is why the USD/SGD has received some downwards momentum help in the past handful of hours. Day traders should be cautious in the USD/SGD, because global equities are still showing nervousness. Yes some gains were made yesterday in the U.S indices but the momentum higher was not exuberant Turbulence Near-Term for the USD/SGD

The near-term may remain rather challenging and known ranges may continue to get tested in Forex, including the USD/SGD which could be considered to be in higher nervous terrain until it goes back below 1.30000.

• And under present conditions, without the help of outwardly dovish sounding Federal Reserve outlook, sustaining lower realms in the USD/SGD may prove difficult in the near-term.
• Speculators who feel the USD/SGD should be lower might be correct regarding mid-term thinking, but for the moment should not get too ambitious about looking for ratios below current short-term support ratios.
• Perhaps looking for the 1.30500 to 1.30400 to become a battlefield is the better plan as choppy conditions look ready to remain rather challenging today and tomorrow.

EURUSD Chart by TradingViewSingapore Dollar Short Term Outlook:

Current Resistance: 1.30580

Current Support: 1.30520

High Target: 1.30670

Low Target: 1.30430

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