Source: PaxForex Premium Analytics Portal, Fundamental Insight
Singapore’s Industrial Production for July surged by 10.1% monthly and rose 1.8% annualized. Forex traders can compare this to Singapore’s Industrial Production for June, which decreased by 4.3% monthly and 4.3% annualized.
US Preliminary Durable Goods Orders for July are predicted to increase by 4.0% monthly, and Durables Excluding Transportation to come in flat at 0.0% monthly. Forex traders can compare this to US Durable Goods Orders for June, which plunged by 6.6% monthly, and Durables Excluding Transportation, which increased by 0.5% monthly.
The forecast for the USD/SGD turned cautiously bullish after this currency pair corrected into its horizontal support area, reinforced by the psychological support level of 1.3000. The Tenkan-sen continues to move lower, but the Kijun-sen has started to flatten, suggesting downside pressure is fading. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud resume their downtrend and could limit upside potential. Traders should also monitor the CCI in extreme oversold territory, where a positive divergence has formed. A breakout above -100 could trigger the next advance, and this technical indicator has plenty of upside potential to lead a recovery. Can bulls regain control over the USD/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 USD/SGD remain inside the or breakout above the 1.3000 to 1.3045 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3020
- Take Profit Zone: 1.3230 – 1.3290
- Stop Loss Level: 1.2950
Should price action for the USD/SGD breakdown below 1.3175, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.2950
- Take Profit Zone: 1.2850 – 1.2900
- Stop Loss Level: 1.3000
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
