Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Singapore CPI for November decreased by 0.2% monthly and increased by 3.6% annualized. Economists predicted a contraction of 0.2% and 3.8%. Forex traders can compare this to the Singapore CPI for October, which rose 0.2% monthly and 4.7% annualized. The Singapore Core CPI for November expanded by 3.2% annualized. Economists predicted an increase of 3.2%. Forex traders can compare this to the Singapore Core CPI for October, which rose 3.3% annualized.
Singapore Industrial Production for November plunged by 7.8% monthly and rose by 1.0% annualized. Economists predicted a drop of 7.1% and a rise of 3.1%. Forex traders can compare this to Singapore Industrial Production for October, which surged by 9.9% monthly and 7.6% annualized.
The US House Price Index for October is predicted to increase by 0.5% monthly. Forex traders can compare this to the US House Price Index for September, which rose by 0.6% monthly.
The US S&P/Case-Shiller Composite 20 for October is predicted to rise by 5.00% annualized. Forex traders can compare this to the US S&P/Case-Shiller Composite 20 for September, which rose by 3.90% annualized.
The last trading week of 2023 is set to start quietly, with most of Europe closed for the extended Christmas holiday. This week could see low volumes and higher volatility, as most institutional trading firms operate skeleton staffs. The economic calendar is light, and traders are likely to assess their portfolios and adjust positions based on how they view progress on the inflation fight versus a slowing economy. Headline inflation decreased, but consumers continue to feel the pressure of high prices and excessive debt loads. Some signs also point to rising input costs at producers and manufacturers, which could pause the recent declines in headline inflation indicators.
The forecast for the USD/SGD is cautiously bullish after this currency pair corrected into its horizontal support area. The Kijun-sen continues to move lower, but the Tenkan-sen flatlined, and a bullish crossover could follow. Adding to the bullishness is the flat Ichimoku Kinko Hyo Cloud, where the Senkou Span A began to drift higher and narrow the cloud. Traders should also monitor the CCI in extreme oversold territory, as a positive divergence formed. A breakout by this technical indicator above -100 could trigger a relief rally. Can bulls regain control over price action and drive the USD/SGD into its horizontal resistance area inside its Ichimoku Kinko Hyo Cloud? 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 1.3200 to 1.3245 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3225
- Take Profit Zone: 1.3410 – 1.3460
- Stop Loss Level: 1.3160
Should price action for the USD/SGD breakdown below 1.3200, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3160
- Take Profit Zone: 1.3030 – 1.3090
- Stop Loss Level: 1.3200
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