Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Singapore Trade Balance for January came in at S$7.563B. Forex traders can compare this to the Singapore Balance for December, reported at S$7.068B. Non-oil exports for January rose 2.3% monthly and surged by 16.8% annualized. Economists predicted a rise of 0.5% and 5.4%. Forex traders can compare this to Non-Oil Exports for December, which decreased by 1.7% monthly and 1.5% annualized.
US Housing Starts for January are predicted at 1,450K starts and Building Permits at 1,509K permits. Forex traders can compare this to US Housing Starts for December, reported at 1,460K starts, and Building Permits at 1,493K permits.
The US PPI for January is predicted to rise by 0.1% monthly and by 0.6% annualized. Forex traders can compare this to the US PPI for December, which decreased by 0.1% monthly and rose by 1.0% annualized. The US Core PPI for January is predicted to expand by 0.1% monthly and by 1.6% annualized. Forex traders can compare this to the US Core PPI for December, which was flat at 0.0% monthly and increased by 1.8% annualized. Today’s PPI report could surprise to the upside, as the CPI did, and result in a heavy sell-off across US financial markets.
Preliminary US Michigan Consumer Sentiment for February is predicted at 80.0. Forex traders can compare this to US Michigan Consumer Confidence for January, reported at 79.0. Preliminary Current Conditions for February are expected at 82.0, and Preliminary Expectations are predicted at 76.5. Forex traders can compare this to Current Conditions for January, reported at 81.9, and Expectations, reported at 77.1.
The forecast for the USD/SGD turned bearish after this currency pair lost upside momentum following a fresh 2024 high. It trades inside its horizontal resistance area, with the Tenkan-sen and the Kijun-sen flatlining. Price action trades below its Tenkan-sen but above its Kijun-sen, and the Ichimoku Kinko Hyo Cloud completed a bullish crossover with volatility expected to increase. The Senkou Span drifts higher, with the Senkou Span B showing signs of entering a sideways trend. Traders should also monitor the CCI after it has formed a negative divergence in extreme overbought territory followed by a breakdown. This technical indicator has plenty of downside potential, and a move below zero could trigger heavy selling in this currency pair. Can bears overpower bulls and regain control over the USD/SGD to force price action into its horizontal support area and a fresh 2024 low? 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 1.3440 to 1.3485 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3460
- Take Profit Zone: 1.3270 – 1.3310
- Stop Loss Level: 1.3525
Should price action for the USD/SGD breakout above 1.3485, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3525
- Take Profit Zone: 1.3615 – 1.3655
- Stop Loss Level: 1.3485
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