Source: PaxForex Premium Analytics Portal, Fundamental Insight

The Singapore CPI for August increased 0.9% monthly and 7.5% annualized. Forex traders can compare this to the Singapore CPI for July, which rose 0.2% monthly and 7.0% annualized. The Singapore Core CPI for August expanded by 5.1% annualized. Economists predicted an increase of 5.0%. Forex traders can compare this to the Singapore Core CPI for July, which increased 4.8% annualized.

The Final Spanish GDP for the second quarter is predicted to increase 1.1% quarterly and 6.3% annualized. Forex traders can compare this to the Spanish GDP for the first quarter, which rose 0.2% quarterly and 6.3% annualized.

The Preliminary French Markit Manufacturing PMI for September is predicted at 49.8, the Preliminary French Markit Services PMI at 50.5, and the Preliminary French Markit Composite PMI at 49.8. Forex traders can compare this to the French Markit Manufacturing PMI for August, reported at 50.6, the French Markit Services PMI at 51.2, and the French Markit Composite PMI at 50.4.

The Preliminary German Markit Manufacturing PMI for September is predicted at 48.3, the Preliminary German Markit Services PMI at 47.2, and the Preliminary German Markit Composite PMI at 46.0. Forex traders can compare this to the German Markit Manufacturing PMI for August, reported at 49.1, the German Markit Services PMI at 47.7, and the German Markit Composite PMI at 46.9.

The Preliminary Eurozone Markit Manufacturing PMI for September is predicted at 48.7, the Preliminary Eurozone Markit Services PMI at 49.0, and the Preliminary Eurozone Markit Composite PMI at 48.2. Forex traders can compare this to the Eurozone Markit Manufacturing PMI for August, reported at 49.6, the Eurozone Markit Services PMI at 49.8, and the Eurozone Markit Composite PMI at 48.9.

The forecast for the EUR/SGD remains bullish after price action stabilized at its horizontal support area. Volatility may rise as the Kijun-sen flatlined, confirming the lack of short-term bearishness, while the Tenkan-sen extends its contraction and could perform a bearish crossover. Adding to the bullish outlook is the sideways drifting Ichimoku Kinko Hyo Cloud, which began to narrow. Traders should also monitor the CCI after it has entered extreme oversold territory. While temporary downside pressure persists, this technical indicator is likely to record a higher low before attempting a breakout, which would offer a final buy signal. Can bulls keep bears at bay and push the EUR/SGD 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 1.3865 to 1.4000 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 1.3940
• Take Profit Zone: 1.4280 – 1.4380
• Stop Loss Level: 1.3770

Should price action for the EUR/SGD breakdown below 1.3865, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 1.3770
• Take Profit Zone: 1.3500 – 1.3635
• Stop Loss Level: 1.3865

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