(MENAFN- Daily Forex) The USD/SGD is near the 1.29570 ratio as of this writing, this as the currency pair has been able to trade below the 1.300000 level for one week while showing financial institutions might be shifting outlooks.

After trading above the 1.30000 level since late October into the middle of last week, the USD/SGD has begun to show signs that financial institutions believed the currency pair was too high. On the 21st of November the USD/SGD was around the 1.30925 vicinity, but since Monday the 24th of November, the currency pair has established a lower trend. Movement lower in the USD/SGD has correlated with the broad Forex market, but it can be said the Singapore Dollar has once again perhaps established itself as a barometer regarding mid-term outlooks regarding USD centric price action.

This morning the USD/SGD is around the 1.29570, and although a high of nearly 1.29860 was challenged yesterday, some more selling has developed today. Intriguingly the USD/SGD remains above Monday's lows which saw the 1.29325 vicinity flirted upon. Day traders have different timeframes to consider regarding their perspectives and outlooks, but they should know the U.S Federal Reserve is coming next week.

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The ability of the USD/SGD to reestablish its lower values and remain under the 1.30000 level the past handful of days sets the table for a look at three and six month charts for speculators to consider what may take place short and near-term. A lack of clarity via the U.S Federal Reserve has caused plenty of caution in currencies paired against the USD. The past couple of months have been choppy. However, with the Fed set to make its interest rate decision next Wednesday, it appears some larger players are showing an inclination towards an interest rate to come of 25 basis points.

The USD/SGD is still within the higher elements of its six month range. From mid-August until late September the USD/SGD was practicing a range between 1.28050 to almost 1.29050 with some outliers. Perhaps some financial institutions may believe this realm will be re-established, but first the U.S Fed will have to confirm an interest rate cut next week and perhaps even suggest more cuts could be seen in the first quarter of 2026.

EURUSD Chart by TradingViewNear-Term Choppiness as Range Gets Tested

Because there is no clear outline for an interest rate cut from the Federal Reserve next week day traders need to be prepared for choppy conditions which could provide a lot of volatility. If the Fed doesn't cut interest rates next week, the USD/SGD will likely move higher.

U.S economic data has been lackluster the past week, and this should make the Fed more dovish.
The USD/SGD could find a range that tests current near-term support and resistance the next few days and even into next week.
This Friday the PCE Price Index will come from the States, if this data meets expectations of 0.2% it could help USD/SGD bearish tendencies Dollar Short Term Outlook:

Current Resistance: 1.29590

Current Support: 1.29535

High Target: 1.29675

Low Target: 1.29750

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