Source: PaxForex Premium Analytics Portal, Fundamental Insight
Singapore Industrial Production for June dropped 8.5% monthly and rose 2.2% annualized. Economists predicted a decrease of 6.3% and a rise of 6.0%. Forex traders can compare this to Singapore Industrial Production for May, which surged 9.2% monthly and 10.4% annualized.
The US S&P/Case-Shiller Composite 20 for May is predicted to increase 1.50% monthly and 20.60% annualized. Forex traders can compare this to the US S&P/Case-Shiller Composite 20 for April, which rose 1.80% monthly and 21.20% annualized.
US Consumer Confidence for July is predicted at 97.2. Forex traders can compare this to US Consumer Confidence for June, reported at 98.7.
US New Home Sales for June are predicted at 660K new homes. Forex traders can compare this to US New Home Sales for May, reported at 696K new homes.
The US Richmond Fed Manufacturing Index for July is predicted at -17. Forex traders can compare this to the US Richmond Fed Manufacturing Index for June, reported at -11.
Walmart reminded financial markets of the toll high inflation ad borrowing costs have on the most vulnerable consumers. The US Federal Reserve will hike interest rates by either 75 basis points or follow the Bank of Canada with a 100 basis point hike but remains well behind the inflationary curve. Over a decade of monetary policy mistakes that nurtured excessive debt allowed inflation to entrench itself deep into the economic infrastructure.
Traders should pay attention to regional manufacturing indices after the Dallas Fed Manufacturing Index contracted further in July, as reported yesterday. Today’s Richmond Fed Manufacturing Index could confirm the sharp slowdown. Strikes in ports on the US West Coast and Germany add to inflationary pressures. The US labor market shows cracks despite the abundance of job openings, as initial jobless claims tick higher and the rate of firings increases.
The forecast for the USD/SGD remains bearish, but volatility could increase as bears attempt to pressure this currency pair below its ascending Ichimoku Kinko Hyo Cloud. Adding to the negative outlook for price action are the descending Tenkan-sen and Kijun-sen. Traders should monitor the CCI in extreme oversold territory, from where a breakout is likely. It could allow this currency pair to extend its current bounce, but this technical indicator is unlikely to push above the zero level sustainably. A brief spike higher followed by a reversal will give traders a final sell signal. Can bears overpower bears and force the USD/SGD into its 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 1.3810 to 1.3890 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3840
- Take Profit Zone: 1.3530 – 1.3595
- Stop Loss Level: 1.3950
Should price action for the USD/SGD breakout above 1.3890, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3950
- Take Profit Zone: 1.4015 – 1.4100
- Stop Loss Level: 1.3890
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