Source: PaxForex Premium Analytics Portal, Fundamental Insight
Singapore Industrial Production for April increase by 1.0% monthly and 2.1% annualized. Economists predicted an increase of 0.5% and 3.4%. Forex traders can compare this to Singapore Industrial Production for March, which decreased 1.7% monthly and increased 7.6% annualized.
The Final German GDP for the first quarter is predicted to decrease by 1.7% quarterly and 3.3% annualized. Forex traders can compare this to the German GDP for the fourth quarter, which increased 0.3% quarterly, and which decreased 3.3% annualized. The German IFO Business Climate Index for May is predicted at 98.2. Forex traders can compare this to the German IFO Business Climate Index for April, reported at 96.8. The German IFO Current Assessment Index for May is predicted at 95.5. Forex traders can compare this to the German IFO Current Assessment Index for April, reported at 94.1. The German IFO Expectations Index for May is predicted at 101.4. Forex traders can compare this to the German IFO Expectations Index for April, reported at 99.5.
The forecast for the EUR/SGD turned bearish after stalling at resistance. While the Kijun-sen continues to advance, the Tenkan-sen shows signs of exhaustion. Price action disconnected from its moderately ascending Ichimoku Kinko Hyo Cloud and is expected to retrace until it can reconnect. The CCI moved out of extreme overbought territory and has more downside potential. Financial markets remain elevated and ignore the mounting warning signs for the global economy, favoring a stronger Singapore Dollar over the Euro, and by extension, the US Dollar. Can bears take control of the EUR/SGD and pressure it down into its 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 1.6190 to 1.6235 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.6210
- Take Profit Zone: 1.5910 – 1.5945
- Stop Loss Level: 1.6290
Should price action for the EUR/SGD breakout above 1.6235, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.6290
- Take Profit Zone: 1.6390 – 1.6435
- Stop Loss Level: 1.6235
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