Currency Markets: Can Singapore Dollars Move Higher?
The currency markets have seen many surprises this year in terms of the trending activity that has been generated and this has created new opportunities for forex traders that might not have otherwise been anticipated. One of the most interesting currencies has been the Singapore Dollar, which has shown some extreme strength against the Chinese Yuan. Many investors now wonder whether these trends can continue into 2018.
In order to gain access to the forex markets in Asia, traders need a reputable forex broker that is established in the region. These brokers will enable you to open a forex trading account Singapore with a broad range of assets that can be traded on a nearly constant basis. Currency markets can offer the potential for capital gains and interest rate advantages, and so this is a type of investing practice that has grown greatly in popularity over the last decade.
In Asian currency markets, a lot of the trending activity is often determined by the relative valuations that are seen in the Singapore Dollar and the Chinese Yuan. In this chart, we can see that the SGD has been steadily gaining over the last few months as the economy continues to strengthen. This has been accompanied by weakness in several areas of the Chinese economy along with the prospect of a trade with the United States amid heightened military tensions in North Korea.
As we can see, the Asian region is becoming increasingly important in terms of the way it is impacting the world economy and forex traders can take advantage of these moves by using trading platforms in the active markets.
Technical Analysis in Forex
If you are looking for technical analysis strategies that can be used to identify these moves, we have several tutorials on the ways forex traders can use price charts and plot the trends that are unfolding in these areas. In the chart example shown here, we can see that the Singapore Dollar is looking very strong against the Chinese currency and this is a trend that is likely to remain in place well into next year.
Forex technical analysis strategies will typically utilize support and resistance levels in order to determine when a specific currency is likely to be bought or sold. This information can then be expressed through positions that are opened using a forex trading platform so that market traders in Singapore can capitalize on the strengths and weaknesses that are seen in critical areas within the global economy. All of these factors work in combination to create opportunities in investment that use interest rates as an added feature in the total gains that can be captured.