USD/SGD has moved lower early this morning and is in sight of interesting support levels, but market conditions are suspect.
Bear traders USD/SGD who have been trying to consistently sell the currency pair may be in a rather cheerful mood; this is after a strong reversal from Friday’s high near 1.35740 was shown. USD/SGD is currently hovering around 1.34875 and has seen a solid bearish move early this morning. Yesterday’s low around 1.34800 is in sight.
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However, before USD/SGD jumps on the bandwagon and start chanting that a strong downtrend is on the way, they should keep in mind that US financial institutions are closed for the Independence Day holiday. Yesterday’s trading volumes were weak yesterday as many major US department stores created a big holiday weekend by simply giving their employees Monday off for today’s celebration. USD/SGD has certainly seen a downward move, but the question is, can it be sustained?
Speculators who remain sellers can point to yesterday’s US ISM Manufacturing Price readings, which showed a sharper-than-expected decline. The “news” that price pressures on manufacturers may have eased is interesting because it could be a signal that inflation is starting to ease. If that proves to be the case with more inflation data coming in over the next few weeks, the Fed may consider NOT raising the federal funds rate on the 26th.Thursday July.
- The move lower in USD/SGD was solid, but it was done on light trading volume and should be viewed with skepticism.
- However, speculators looking to gamble and look for an upside move based on the idea that USD/SGD is oversold should be patient.
- Solid risk management should be used to protect against USD/SGD sudden swings today and tomorrow.
Traders should understand that the rest of the day may look rather quiet trading in USD/SGD. Speculators tracking USD/SGD can use take profit orders to target nearby prices to profit from “quick” positions. Until full volume returns on Wednesday and Thursday, USD/SGD may experience choppy conditions and sudden reversals. USD/SGD’s lower move over the past two days is notable, but until US financials bounce back, the downward momentum may prove to be an illusion with a sudden buying reaction developing later this week. Monitoring USD/SGD over the next day and a half may be wise while sitting on the sidelines.
Current Resistance: 1.34970
Current support: 1.34835
High Aim: 1.35215
Low Target: 1.34750