Source: PaxForex Premium Analytics Portal, Fundamental Insight

Singapore Retail Sales for December rose by 1.3% monthly and 7.4% annualized. Forex traders can compare this to Singapore Retail Sales for November, which contracted by 3.6% monthly and increased by 6.5% annualized.

The US NFP Report for January is predicted to show 185K job additions and an unemployment rate of 3.6%. Forex traders can compare this to the US NFP Report for December, which showed 223K job additions and an unemployment rate of 3.5%. Private Payrolls for January are predicted to show 190K job additions and Manufacturing Payrolls 6K job additions. Forex traders can compare this to Private Payrolls for December, which showed 220K job additions, and Manufacturing Payrolls, which showed 8K job additions. The Average Work Week for January is predicted at 34.3 hours. Forex traders can compare this to the Average Work Week for December, reported at 34.3 hours. Average Hourly Earnings for January are predicted to increase by 0.3% monthly and 4.3% annualized. Forex traders can compare this to Average Hourly Earnings for December, which rose 0.3% monthly and 4.6% annualized.

The Final US S&P Global Composite PMI for January is predicted at 46.6, and the Final US S&P Global Services PMI at 46.6. Forex traders can compare this to the US S&P Global Composite PMI for December, reported at 45.0, and the US S&P Global Services PMI at 44.7.

The US ISM Non-Manufacturing PMI for January is predicted at 50.4, and the ISM Non-Manufacturing Business Activity Index at 54.5. Forex traders can compare this to the US ISM Non-Manufacturing PMI for December, reported at 49.6, and the ISM Non-Manufacturing Business Activity Index at 54.7.

The forecast for the USD/SGD has turned cautiously bullish after this currency pair corrected into its horizontal support area before stabilizing. Bulls and bears will battle for directional control, and volatility could increase as the Kijun-sen, and the Tenkan-sen, have flatlined, suggesting the absence of short-term bullishness. The Ichimoku Kinko Hyo Cloud continues its descent, but it shows signs of reaching the end, with the Senkou Span A slowing the pace of contraction. Traders should also monitor the CCI, which has recorded a series of higher lows in extreme oversold territory. A positive divergence has formed, and this technical indicator completed a breakout above -100 with plenty of upside potential. Can bulls overpower bears and regain complete control over the USD/SGD to 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 1.2980 to 1.3140 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 1.3100
• Take Profit Zone: 1.3375 – 1.3475
• Stop Loss Level: 1.2960

Should price action for the USD/SGD breakdown below 1.2980, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 1.2960
• Take Profit Zone: 1.2855 – 1.2900
• Stop Loss Level: 1.2980

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