Source: PaxForex Premium Analytics Portal, Fundamental Insight

Singapore Industrial Production for December increased 4.3% monthly and 15.6% annualized. Economists predicted an increase of 0.9% and 12.0%. Forex traders can compare this to Singapore Industrial Production for November, which increased 1.8% monthly and 14.1% annualized.

The US Trade Balance for December is predicted at -$96.10B. Forex traders can compare this to the US Trade Balance for November, reported at -$98.04B. US Preliminary Wholesale Inventories for December are predicted to increase 1.3% monthly. Forex traders can compare this to US Wholesale Inventories for November, which increased 1.4% monthly. US New Home Sales for December are predicted at 760K new homes. Forex traders can compare this to US New Home Sales for November, reported at 744K new homes.

The US FOMC Interest Rate Decision is predicted to show interest rates at 0.25%. Forex traders can compare this to the previous US FOMC Interest Rate Decision, which showed interest rates at 0.25%. Given the acceleration of inflation, some Fed watchers believe the Fed could hike interest rates today, as the central bank remains behind the curve. Other signs to monitor are an acceleration of the reduction in bond purchases and comments about its balance sheets, which the Fed will start to unwind.

The forecast for the USD/SGD remains bearish after the descending Ichimoku Kinko Hyo Cloud rejected price action, pushing this currency pair to multi-month lows. While the Tenkan-sen flatlined, the Kijun-sen continues to move lower, confirming short-term selling pressure is intact. The bearish crossover between the Senkou Span A and the Senkou Span B adds to the bearish outlook. Traders should monitor the CCI for a renewed breakdown below -100 after this technical indicator recorded a lower high. Can bears continue to pressure the USD/SGD to the downside until it reaches its next 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 1.3400 to 1.3455 zone, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Short Position
• Entry Level: Short Position @ 1.3430
• Take Profit Zone: 1.3175 – 1.3220
• Stop Loss Level: 1.3480

Should price action for the USD/SGD breakout above 1.3455, PaxForex recommends the following trade set-up:

• Timeframe: D1           
• Recommendation: Long Position
• Entry Level: Long Position @ 1.3480
• Take Profit Zone: 1.3565 – 1.3600
• Stop Loss Level: 1.3455

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