USDSGD near-term outlook – HIT!

On February 6th, we posted an article recommending a near-term USDSGD trade based purely on our daily charting. On February 6th, USDSGD was at 1.5030, based on our chart, we saw a high probability of USDSGD weakening by a possible 100bps and within 72 hours, on February 9th, USDSGD traded down to 1.4904 for a 126bps.

Near term trades are trades where if the call is right, it will happen within the next 48 hours to 72 hours.

We took profit on our spot position at 1.4930 for a 100 bps profit. We then establish a new spot trade to LONG USDSGD at 1.4950 and we also bought a 3 month call option USDSGD at 1.4930.

Please observe the daily chart as at February 17th posted below: -



Right after, it hit a low of 1.4904 it started climbing back up to the current 1.5278.

Our medium-term outlook on February 6th and today is consistent, please observe the following weekly chart and reflect it with the weekly chart of February 6th. The trend lines are holding with no change, which means that USDSGD will continue to strengthen towards 1.55 within the next 3 months.



Our advice therefore is if you are holding USD and are waiting for a higher level to switch into SGD…….you can afford to wait and potentially catch a higher level towards 1.55.

On the other hand, if you are holding SGD and you need to use USD, then, we would recommend that you convert to USD now or soon before the SGD continues to erode.