Source: PaxForex Premium Analytics Portal, Fundamental Insight

The New Zealand Trade Balance for May was reported at NZ$469M monthly and at -NZ$60M 12-month year-to-date. Forex traders can compare this to the New Zealand Trade Balance for April, reported at NZ$414M monthly and NZ$760M 12-month year-to-date. Exports for May were reported at NZ$5.87B and Imports at NZ$5.40B. Forex traders can compare this to Exports for April, reported at NZ$5.40B, and to Imports, reported at NZ$4.99B.

Singapore Industrial Production for May increased 7.2% monthly and 30.0% annualized. Economists predicted a decrease of 0.9% and an increase of 23.6%. Forex traders can compare this to Singapore Industrial Production for April, which decreased 0.4% monthly and increased 2.3% annualized. 

The forecast for the NZD/SGD turned bearish after this currency pair ran into resistance, with the Ichimoku Kinko Hyo Cloud shifting lower. While the Tenkan-sen and the Kijun-sen entered a sideways trend, the negative crossover of the Senkou Span A below the Senkou Span B is expected to kick-start the next move lower. The CCI jumped out of extreme oversold territory but is losing momentum, suggesting bears might regain control. Will bears step in and force a reversal in the NZD/SGD 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 NZD/SGD remain inside the or breakdown below the 0.9445 to 0.9505 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 0.9475
• Take Profit Zone: 0.9130 – 0.9200
• Stop Loss Level: 0.9535

Should price action for the NZD/SGD breakout above 0.9505, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 0.9535
• Take Profit Zone: 0.9630 – 0.9670
• Stop Loss Level: 0.9505

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