SGD: USD/SGD - Falls Lower, Eyes the Pivotal 1.2900-25 Support

The overnight range was 1.2933 - 1.2959, Asia is currently trading around 1.2940. USD/SGD fell away pretty easily overnight as the USD came under pressure across the board. USD/SGD has been trying to form a base from which to move higher but it looks like it might continue to face some challenges in the short-term. With risk now again firmly on the front foot this could add further headwinds to the longs. On the day, look for sellers to return toward the 1.2955-1.2975 area as the USD is skewed lower, the market should now potentially have another look toward the 1.2900-1.2925 support. This area is pivotal and needs to continue to hold if the USD/SGD move higher is to have any chance of succeeding, a sustained break below here could potentially signal a top is in place and the bears would then be back in control.

• The USD/SGD Average True Range for the last 10 Trading days: 42 Points

Fig 1 : USD/SGD Spot Daily Chart

Source: MNI - Market News/Bloomberg Finance L.P