Singapore Dollar one of best long term currency investments
The USDSGD pair is currently trading around 1.27. Few will remember that once upon a time it was doing 1.85. In my story ‘Why should individuals in foreign currencies?‘ I recalled
Based on the 2001 exchange rate of 1.85 nine years ago, it took 54 US cents for a US citizen to buy 1 Singapore Dollar (an investment in a foreign currency to him). Nine years later, this savvy investor would receive 83 US cents (his native currency) when he sold his 1 Singapore Dollar. That is an amazingly sexy long term capital appreciation of 29 cents or 54% gain.
After 3 years of consolidation, will 2014 be a watershed for USDSGD?
I invite members of this community to comment, predict where USDSGD will head. As an incentive, the best three responses before 6pm tomorrow will receive three support class vouchers worth S$120 (1. only Tflow® students qualify 2. cannot be used to redeem cash 3. must use by end June 2014).
As a reminder, some technical analysis concepts involved:
- Previous trend (2009 – 2011) is down.
- Price action continues to print lower annual highs.
- Price consolidated in a triangle chart pattern over the past three years; this is an exchange of hands as early entrants take profit while late entrants position themselves.
- USDSGD technical picture the last time we looked.
- USDSGD will continue to get squeezed as it moves towards an ‘apex’ where it has to breakout at some time.
For non-Singaporeans, an easy way to expose oneself to the currency is through this ETF.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.