Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Singapore Trade Balance for March came in at S$4.657B. Forex traders can compare this to the Singapore Balance for February, reported at S$5.960B. Non-oil exports for March plunged by 8.4% monthly and collapsed by 20.7% annualized. Forex traders can compare this to Non-oil exports for February, which dropped by 4.9% monthly and decreased by 0.2% annualized.

The Eurozone CPI for March is predicted to increase by 0.8% monthly and 2.4% annualized. Forex traders can compare this to the Eurozone CPI for February, which expanded by 0.6% monthly and 2.6% annualized. The Eurozone Core CPI for March is predicted to accelerate by 1.1% monthly and by 2.9% annualized. Forex traders can compare this to the Eurozone Core CPI for February, which rose by 0.7% monthly and 3.1% annualized. The Eurozone Harmonized Core CPI for March is predicted to increase by 1.0% monthly and by 3.1% annualized. Forex traders can compare this to the Eurozone Harmonized Core CPI for February, which accelerated by 0.6% monthly and 3.3% annualized.

Traders may focus on the Euro today in an otherwise slow economic news day. Singapore shocked markets with its massive collapse in non-oil exports, reminding markets that the global economy continues to cool. The German Bundesbank Monthly Report may provide a catalyst for price action after the ECB hinted that interest rate cuts could follow amid a decrease in inflationary pressures. The Bundesbank Monthly Report discusses economic issues, monetary policy, and financial and economic policies and can lead to ECB policy changes. The EU Leaders Summit and Eurogroup meetings could echo ECB statements, and traders should expect increased volatility during the trading session.

The forecast for the EUR/SGD turned cautiously bullish after this currency pair corrected into its horizontal support area before stabilizing. After completing a bullish crossover, the Ichimoku Kinko Hyo Cloud flatlined with the Senkou Span A and the Senkou Span B trending sideways. The Kijun-sen also flatlined, but the Tenkan-sen continues to drift lower following a bearish crossover. Traders should also monitor the CCI after it recorded a lower low in extreme oversold territory followed by a breakout above -100. This technical indicator has plenty of upside potential, and a move above zero could trigger a bigger advance. Can bulls regain control over the EUR/SGD and push price action into its horizontal resistance area? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.

Should price action for the EUR/SGD remain inside the or breakout above the 1.4455 to 1.4500 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 1.4485
• Take Profit Zone: 1.4645 – 1.4685
• Stop Loss Level: 1.4420

Should price action for the EUR/SGD breakdown below 1.4455, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 1.4420
• Take Profit Zone: 1.4325 – 1.4385
• Stop Loss Level: 1.4455

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