Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Singapore Trade Balance for December was reported at $6.200B. Forex traders can compare this to the Singapore Balance for November, reported at $3.930B. Non-Oil Exports for December increased by 6.6% monthly and by 6.8% annualized. Economists predicted an increase of 3.6% and 0.3%. Forex traders can compare this to Non-Oil Exports for November, which increased by 3.7% monthly, and which decreased by 5.0% annualized.
The Preliminary Italian CPI for December is predicted to increase by 0.3% monthly and to decrease by 0.1% annualized. Forex traders can compare this to the Italian CPI for November, which decreased by 0.1% monthly and 0.2% annualized. The Preliminary Italian Harmonized CPI for December is predicted to increase by 0.2% monthly and to decrease by 0.3% annualized. Forex traders can compare this to the Italian Harmonized CPI for November, which was reported flat at 0.0% monthly, and which decreased 0.3% annualized.
The forecast for the EUR/SGD carries a bearish bias after price action corrected into its Ichimoku Kinko Hyo Cloud. A small advance is possible, but bearish pressures remain intact with more downside potential. The Eurozone is set to add its debt load in 2021, pressuring the Euro lower. The Tenkan-sen and Kijun-sen entered a sideways trend, suggesting bulls will stay on the sidelines. The CCI is in extreme oversold conditions and may peek above -100 before resuming its move lower. Will bears spark a new leg lower in the EUR/SGD into its next horizontal support 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 breakdown below the 1.6045 to 1.6115 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6070
- Take Profit Zone: 1.5845 – 1.5895
- Stop Loss Level: 1.6145
Should price action for the EUR/SGD breakout above 1.6115 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.6145
- Take Profit Zone: 1.6215 – 1.6255
- Stop Loss Level: 1.6115
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