The USD/BRL has displayed ability to move slightly upwards the past day of trading, but technically the forex pair remains within sight of near term support.

Speculators who want to wager on the USD/BRL via trading today will have plenty of technical considerations to make. The USD/BRL has proven its long term ability to open the day’s trading with vivid gaps, so speculators should monitor the start of the day. Yesterday’s closing price for the USD/BRL currency pair was near 5.1450, which essentially places price action near the upper realms of its five day chart.

However, even as the USD/BRL has accomplished a slight bullish run and been able to sustain the ‘highs’, the forex pair actually has shown ability to incrementally trade lower in the past month. The notion that the financial world is now within the dog days of summer in the northern hemisphere should be taken into consideration, because trends sometimes can prove to be illusions this time of year – meaning they are short lived. Yet, the USD/BRL has mirrored many other major currencies the past handful of weeks and shown some bearish tendencies.

Recent Move Higher may have some Staying Power, but it could also prove to be False

On the 3^rd of August the USD/BRL was trading near the 5.31000 ratio. On the 21^st of July the USD/BRL was near the 5.5200 mark. This decline in price for the USD/BRL currency pair has created a rather incremental pattern. Yes, reversals have been seen, but resistance levels have lowered for nearly a month.

• Resistance near the 5.1600 level should be watched near term, if this level proves strong and is not penetrated higher, additional selling of the USD/BRL could be sparked.
• Today’s opening should be watched closely, a move higher may make sellers nervous, but if price action is consolidated or a move lower occurs early this could be polite bearish signal.

Reversals are certain to occur in the USD/BRL as the Trading Range is Tested Short Term

The USD/BRL is likely to present traders with a solid speculative opportunity today.  With near term resistance levels within sight near the 5.1600 to 5.1700 marks, traders will want to see if these ratios can prove durable. If the higher levels prove strong additional selling may occur on the notion the trend for the USD/BRL remains bearish.

A move above the higher relatively close resistance levels could set off volatility in the near term. However, the last time the USD/BRL traded above the 5.2000 level was on the 5^th of August. If the USD/BRL opens with a slightly lower move, but remains above the 5.1400 mark this could entice bearish traders to aim for the 5.1350 to 5.1275 prices. Entry orders should be used with the USD/BRL and solid risk management is essential.

Brazilian Real Short-Term Outlook

Current Resistance:  5.1496

Current Support:  5.1342

High Target: 5.1639

Low Target:  5.1148

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The USD/SGD has held onto the upwards movement it created before going into the weekend as Monday has started and may entice traders.

The USD/SGD is hovering near the 1.38000 level as of this writing. Before going into the weekend, the USD/SGD currency pair had been seeing plenty of price activity near the 1.37500 ratio, which was until U.S economic data via Average Hourly Earnings came in stronger than expected.

While technical traders may dismiss the price action as a natural move higher as support was proven durable, fundamental traders certainly will point to behavioral sentiment across Forex which shows the USD got strong in most major currency pairs at nearly the exact moment. The move higher attained on Friday was a spike upwards which touched the 1.38340 level briefly.  It appears the USD/SGD currency pair may face rather choppy conditions moving forward this week.

Ride Upwards Mirrors Other Major Currencies as USD/SGD Climbs

The fact that the USD/SGD has essentially held its ground this morning and not reversed sharply lower, likely demonstrates nervous sentiment again is vast regarding the U.S Federal Reserve’s outlook regarding interest rates. On the 26^th of July the USD/SGD was trading near the 1.39000 ratio, this before slumping to a low of nearly 1.374700 momentarily this past Friday. The incremental selling of the USD/SGD likely took place the past tend days because financial houses were counting on a less hawkish U.S central bank.

Friday’s data from the U.S turned Forex on its head quickly and the USD/SGD reversal higher suddenly brought the currency pair in sight of upwards realms.  Yes, the USD/SGD could certainly reverse lower and traders should expect choppy conditions ahead this week as financial houses search for equilibrium, but behavioral sentiment may remain nervous about more interest hikes from the U.S than were expected only one week ago. If this proves to be the case the USD/SGD may continue to test the 1.38000 ratio and higher.

• Support near the 1.38000 should be watched closely for the USD/SGD currency pair in the short term. Durable support could spur on more buying of the USD/SGD as speculative perspectives look for more upside.
• Support near the 1.37500 if broken lower would be noteworthy, but may point to an oversold USD/SGD, which could create reversals higher near term.

USD/SGD Testing Higher Realms Again and Bulls may pursue Price Action

The USD/SGD will generate fast trading today.  Last Friday’s spike higher will certainly be tested by speculators who believe the Forex pair has been overbought, but strong lower moves are likely to create buying opportunities. The USD/SGD may find durable support within the 1.37900 to 1.37650 sphere. Traders must be careful with the amount of leverage they use, and take profit and stop loss orders are urged.

Singapore Dollar Short-Term Outlook

Current Resistance: 1.38150

Current Support: 1.37850

High Target: 1.39090

Low Target: 1.37500

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