(Technical Analysis) AUD/SGD Forex Signal: Approaching Key Risk Sentiment Zone

The current market strategy hinges on tracking the broader risk appetite by observing key indices such as the DAX, FTSE 100, ASX 200, and NASDAQ 100. A coordinated rise across these indices suggests an environment of increased risk appetite. In this scenario, if the currency pair in focus breaks above the 0.88 level, it would signal a buying opportunity, with a stop loss set at 0.8750 and a target price of 0.90. On the other hand, if these indices decline and the pair breaks below the 0.87 level, a bearish position would be favoured, with a target of 0.86 and a stop loss at 0.88.

The Australian dollar/Singapore dollar pair is susceptible to risk sentiment, making it a valuable gauge for traders. The Australian dollar tends to perform well in times of high-risk appetite, while the Singapore dollar acts as a safe-haven currency in the region. This dynamic creates a clear reflection of global sentiment, particularly in Asia-Pacific markets. Given that the market is at a key inflexion point, shifts in risk appetite could lead to significant moves, making this pair crucial to monitor in the short term.