Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Singapore Trade Balance for February came in at $6.708B. Forex traders can compare this to the Singapore Balance for January, reported at $6.276B. Non-Oil Exports for February plunged by 8.0% monthly and 16.6% annualized. Economists predicted a drop of 0.5% and 16.0%. Forex traders can compare this to Non-Oil Exports for January, which rose by 0.9% monthly and collapsed by 25.0% annualized.

The Italian Trade Balance for January is predicted at €1.500B. Forex traders can compare this to Italian Trade Balance for December, reported at €1.067B.

The Eurozone CPI for February is predicted to increase by 0.8% monthly and 8.5% annualized. Forex traders can compare this to the Eurozone CPI for January, which decreased by 0.2% monthly and expanded by 8.6% annualized. The Eurozone Core CPI for February is predicted to rise by 0.8% monthly and 5.6% annualized. Forex traders can compare this to the Eurozone Core CPI for January, which contracted by 0.8% monthly and increased by 5.3% annualized. The Eurozone Harmonized Core CPI for February is predicted to rise 0.9% monthly and 7.4% annualized. Forex traders can compare this to the Eurozone Harmonized Core CPI for January, which dropped by 0.4% monthly and rose by 7.1% annualized.

The European Central Bank increased interest rates by 50 basis points to 3.50% yesterday, meeting market expectations, and is likely to tighten monetary policy further as inflation remains high. The recent regional bank turmoil and Credit Suisse capital issues are unlikely to impact the Eurozone banking system. The ECB has to balance regional inequality among its members, where traders monitor the spread between German and Italian treasuries. It is often an indicator of structural economic weakness.

The forecast for the EUR/SGD is cautiously bullish after this currency pair pushed above its Ichimoku Kinko Hyo Cloud, which completed a bullish crossover, adding to upside momentum. The upward drifting Kijun-sen adds to short-term bullishness in price action, and a crossover above the flat Tenkan-sen could accelerate this currency pair higher. Traders should also monitor the CCI following its double breakdown from extreme overbought territory and below zero. This technical indicator may graze extreme oversold conditions from where it can bounce higher, offering a final buy signal. Can bulls withstand bears and maintain control over the EUR/SGD to push price action into its horizontal resistance area and fresh 2023 highs? 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 1.4275 to 1.4330 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 1.4300
• Take Profit Zone: 1.4460 – 1.4535
• Stop Loss Level: 1.4220

Should price action for the EUR/SGD breakdown below 1.4275, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 1.4220
• Take Profit Zone: 1.4055 – 1.4120
• Stop Loss Level: 1.4275

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