Source: PaxForex Premium Analytics Portal, Fundamental Insight
The New Zealand Performance of Services Index for October came in at 46.0. Forex traders can compare this to the New Zealand Performance of Services Index for September, reported at 45.7.
The New Zealand PPI Input for the third quarter increased 1.9% quarterly, and the New Zealand PPI Output rose 1.5% quarterly. Economists predicted a rise of 1.0% and 0.9%. Forex traders can compare this to the New Zealand PPI Input for the second quarter, which expanded 1.4% quarterly, and to the New Zealand PPI Output, which increased 1.1% quarterly.
The Singapore Trade Balance for October came in at S$4.410B. Forex traders can compare this to the Singapore Balance for September, reported at S$5.210B. Non-Oil Exports for October plunged by 7.4% monthly and 4.6% annualized. Forex traders can compare this to Non-Oil Exports for September, which decreased by 0.6% monthly and rose by 0.9% annualized.
The forecast for the NZD/SGD turned bullish after this currency pair corrected into its horizontal support area. The Tenkan-sen and the Kijun-sen have flatlined, confirming the lack of short-term downside pressure. The Senkou Span A of the Ichimoku Kinko Hyo Cloud is moving lower with the Senkou Span B flat, suggesting medium-term volatility could increase and limit the upside potential. Traders should also monitor the CCI in extreme oversold territory, where a positive divergence has formed. A breakout by this technical indicator above -100 could trigger the next advance. Can bulls regain control over the NZD/SGD and push price action 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 NZD/SGD remain inside the or breakout above 0.7830 to 0.7875 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 0.7855
- Take Profit Zone: 0.7965 – 0.8000
- Stop Loss Level: 0.7800
Should price action for the NZD/SGD breakdown below 0.7830, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 0.7800
- Take Profit Zone: 0.7700 – 0.7750
- Stop Loss Level: 0.7830
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