U.S economic data via Factory Orders statistics was negative yesterday. Today the ISM Services PMI numbers will be published, but it is Friday’s jobs numbers which will come from the States which traders may be anticipating. 

The USD/SGD has risen in value since last Wednesday. After touching a low near 1.32845 on the 29^th of November, the currency pair has demonstrated a climb upwards. However, before inexperienced speculators now assume a sustained reversal upwards is going to continue they should consider the behavioral sentiment of financial institutions. The USD/SGD has traded in a correlated fashion with the broad Forex market and the ability to shift direction is not surprising.

The USD/SGD is currently near the 1.33960 mark which is above yesterday’s high of nearly 1.33940. The movement within the USD/SGD is hovering below important technical consideration around the 1.34000 level, but this ratio may not be seen as too important in the view of financial institutions who may believe a resistance window near the 1.34100 to 1.34225 values may be more significant.

After being able to show a large amount of selling since the beginning of November, this slight climb of the USD/SGD is likely more because for the moment, financial institutions believe the currency pair has found equilibrium. Speculators who are geared towards bearish sentiment in the USD/SGD via their outlooks need to accept the currency pair may remain rather choppy over the next few days.

U.S economic data via Factory Orders statistics was negative yesterday. Today the ISM Services PMI numbers will be published, but it is Friday’s jobs numbers which will come from the States which traders may be anticipating. And the question should be asked, what are financial institutions anticipating?

The answer is that financial institutions are likely looking towards the Average Hourly Earnings, which are part of the upcoming jobs numbers on Friday, but more intently are focused on hearing the Federal Reserve stating they are taking a neutral approach towards monetary policy on the 13^th of December. Meaning financial institutions trading currencies for their clients may believe for the moment fair market value exist within the major Forex pairs including the USD/SGD.

• If the USD/SGD can sustain resistance near the 1.33950 to 1.33985 ratios in the short-term, this may create some headwinds and cause speculators to look for downside momentum to be seen.
• The Forex market continues to feed on risk appetite and if optimism is exhibited within the broad markets including gains in U.S equities and a reduction in U.S Treasury yields, this could help push the USD/SGD lower again.
• The past handful of days causing upwards price action in the USD/SGD may look tempting as a selling opportunity for traders, but they should be careful over the next couple of days.

Current Resistance: 1.33.985

Current Support: 1.33910

High Target: 1.34175

Low Target: 1.33600

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