Source: PaxForex Premium Analytics Portal, Fundamental Insight
The advanced Singapore GDP for the second quarter rose by 0.3% quarterly and 0.7% annualized. Economists predicted a rise of 0.3% and 0.6%. Forex traders can compare this to the Singapore GDP for the first quarter, which decreased by 0.4% quarterly and expanded by 0.4% annualized.
The US Import Price Index for June is predicted to decrease by 0.1% monthly and 3.6% annualized. Forex traders can compare this to the US Import Price Index for May, which contracted 0.6% monthly and 5.9% annualized. The US Export Price Index for June is predicted to decrease by 0.2% monthly and 11.1% annualized. Forex traders can compare this to the US Export Price Index for May, which dropped 1.9% monthly and 10.1% annualized.
Preliminary US Michigan Consumer Sentiment for July is predicted at 65.5. Forex traders can compare this to US Michigan Consumer Confidence for June, reported at 64.4. Preliminary Current Conditions for July are expected at 70.4, and Preliminary Expectations at 61.8. Forex traders can compare this to Current Conditions for June, reported at 69.0, and Expectations, reported at 61.5. Preliminary US Michigan Inflation Expectations for July are predicted at 3.3%, and 5-Year Inflation Expectations at 3.1%. Forex traders can compare this to US Michigan Inflation Expectations for June, which stood at 3.3%, and 5-Year Inflation Expectations at 3.0%.
The US Dollar has come under increased selling pressure after recent inflation data receded, but core inflation remains sticky and well above the 2% US Fed target. Adding to an uncertain outlook is the red-hot labor market, while other economic indicators suggest growing weakness. A study published by the US Fed suggested the end of an era for equity markets, as the core drivers for growth have been eliminated. It added to a bearish long-term outlook for the US economy and the US Dollar.
The forecast for the USD/SGD remains bearish after this currency pair corrected below its upward-shifting Ichimoku Kinko Hyo Cloud. Adding to downside pressure is the steep descending Tenkan-sen and Kijun-sen, where a bearish crossover magnifies selling pressure. Traders should monitor the CCI after it has recorded a lower low in extreme oversold territory. This technical indicator may complete a false breakout above -100 before the next leg lower, which would provide the final sell signal. Can bears maintain control over the USD/SGD and force price action into its horizontal support area and fresh multi-year lows? 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 1.3155 to 1.3215 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Long Position @ 1.3185
- Take Profit Zone: 1.2915 – 1.2980
- Stop Loss Level: 1.3270
Should price action for the USD/SGD breakout above 1.3215, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3270
- Take Profit Zone: 1.3360 – 1.3410
- Stop Loss Level: 1.3215
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
