Source: PaxForex Premium Analytics Portal, Fundamental Insight
Singapore Retail Sales for April rose 1.2% monthly and 12.1% annualized. Forex traders can compare this to Singapore Retail Sales for March, which increased 7.4% monthly and 8.8% annualized.
The US NFP Report for May is predicted to show 325K job additions and an unemployment rate of 3.5%. Forex traders can compare this to the US NFP Report for April, which showed 428K job additions and an unemployment rate of 3.6%. Private Payrolls for May are predicted to show 325K job additions and Manufacturing Payrolls 40K job additions. Forex traders can compare this to Private Payrolls for April, which showed 428K job additions, and Manufacturing Payrolls, which showed 55K job additions. The Average Work Week for May is predicted at 34.6 hours. Forex traders can compare this to the Average Work Week for April, reported at 34.6 hours. Average Hourly Earnings for May are predicted to increase 0.4% monthly and 5.2% annualized. Forex traders can compare this to Average Hourly Earnings for April, which rose 0.3% monthly and 5.5% annualized.
The Final US Composite PMI for May is predicted at 53.8, and the Final US Services PMI at 53.5. Forex traders can compare this to the US Composite PMI for April, reported at 56.0, and the US Services PMI reported at 55.6.
The US ISM Non-Manufacturing PMI for May is predicted at 56.4. Forex traders can compare this to the US ISM Non-Manufacturing PMI for April, reported at 57.1.
Forex traders should remain cautious today until after the US NFP release for May, especially following yesterday’s ADP disappointment. The ADP and NFP data are often out of sync, but traders should not ignore the sharp slowdown in the private sector. Volatility is likely to increase as financial markets attempt to finish this week on a positive note. An NFP disappointment could leave equity markets and the US Dollar in the red.
The forecast for the USD/SGD remains bearish after price action moved into its flatlining Ichimoku Kinko Hyo Cloud. Adding to downside pressures is the descending Tenkan-sen, which completed a bearish crossover below the flat Kijun-sen. It is likely to lead this currency pair into a renewed breakdown. After recording a lower low, the CCI pushed out of extreme oversold conditions, but it has remained in negative territory from where traders should expect more downside. Will bears extend their control over the USD/SGD and force price action 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 1.3645 to 1.3730 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3700
- Take Profit Zone: 1.3495 – 1.3530
- Stop Loss Level: 1.3780
Should price action for the USD/SGD breakout above 1.3730, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3780
- Take Profit Zone: 1.3810 – 1.3845
- Stop Loss Level: 1.3730
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
