The US Dollar has been losing value against the Singapore Dollar since March of the last year, at the beginning of the Covid-19 pandemic. In February of this year, the USDSGD was traded at the lowest level in the last 3 years, at 1.3165. Now the price is approaching that point of interest again, which could bring buyers back to the market with more strength. This week’s lowest price was traded at 1.3245 and from this point on, the price has already started a small but clear upward movement. If the price manages to pass above 1.3290, this can be interpreted as initial confirmation of buying power, which can take the price up to 1.3400 as a first target and 1.3530 as a final destination in the mid-term.
See real-time quotes provided by our partner.
Investors should be especially careful with trades involving the US Dollar this Wednesday as the US interest rate decision will likely shake the market.
Early this morning the USDMYR is making a retracement to the upside to test the broken level of 4.10. The intraday price action is likely to range between 4.1000 and 4.1050 as this area was once strong support, now turning into resistance. As long as sellers are able to keep the price below 4.1050, the downtrend is still in place. From a technical point of view, if the price breaks below 4.0980, this could be interpreted as the return of the selling pressure. Traders should keep an eye on the FED’s decision about the US Dollar interest rate, which could change the scenario in the mid and long term.
