Source: PaxForex Premium Analytics Portal, Fundamental Insight
Singapore Industrial Production for March dropped 12.6% monthly and rose 3.4% annualized. Economists predicted a decrease of 3.9% and a rise of 3.5%. Forex traders can compare this to Singapore Industrial Production for February, which rose 16.6% monthly and 17.6% annualized.
US Preliminary Durable Goods Orders for March are predicted to increase by 1.0% monthly, and Durables Excluding Transportation by 0.6% monthly. Forex traders can compare this to US Durable Goods Orders for February, which decreased 2.1% monthly, and Durables Excluding Transportation, which dropped 0.6% monthly. Capital Goods Orders Non-Defense Excluding Aircraft for March are predicted to rise 0.5% monthly. Forex traders can compare this to Capital Goods Orders Non-Defense Excluding Aircraft for February, which decreased 0.2% monthly.
The US S&P/Case-Shiller Composite 20 for February is predicted to increase 1.50% monthly and 19.00% annualized. Forex traders can compare this to the US S&P/Case-Shiller Composite 20 for January, which rose 1.80% monthly and 19.10% annualized. Economists predict US Consumer Confidence for April at 108.0. Forex traders can compare this to US Consumer Confidence for March, reported at 107.2. US New Home Sales for March are predicted at 765K new homes. Forex traders can compare this to US New Home Sales for February, reported at 772K new homes.
Yesterday was a light economic news day, similar to today, but traders received an upbeat German IFO report for April with a surprise expansion from March. The April Dallas Fed Manufacturing Index disappointed as the sector came to a near standstill. The overall economic outlook remains mixed with a bearish bias, and inflation continues to chip away at earnings and consumer confidence. This morning's Singapore industrial production data reminded markets that volatility remains elevated. Traders should remain cautious as US tech earnings are likely to impact sentiment today.
The forecast for the USD/SGD turned bearish after this currency pair exhausted its upside, and the last two daily candlesticks formed bearish patterns. Adding to the short-to-medium-term negative outlook are the Kijun-sen and the Tenkan-sen, as both turned sideways. The flat Ichimoku Kinko Hyo Cloud shows signs of bearishness with the Senkou Span A moving lower. Traders should also monitor the CCI after a negative divergence formed in extreme overbought territory. A breakdown below 100 could trigger a sell-off. Can bears pressure the USD/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 USD/SGD remain inside the or breakdown below the 1.3690 to 1.3770 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3710
- Take Profit Zone: 1.3495 – 1.3530
- Stop Loss Level: 1.3820
Should price action for the USD/SGD breakout above 1.3770, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3820
- Take Profit Zone: 1.3880 – 1.3910
- Stop Loss Level: 1.3770
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