Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Singapore Trade Balance for May was reported at $4.040B. Forex traders can compare this to the Singapore Balance for April, which was reported at $2.630B. Non-Oil Exports for May decreased by 4.5% monthly and by 4.5% annualized. Forex traders can compare this to Non-Oil Exports for April, which decreased by 5.1% monthly, and which increased by 9.7% annualized. US Housing Starts for May are predicted at 1,095K starts, and Building Permits at 1,228K permits. Forex traders can compare this to US Housing Starts for April, which were reported at 0.891K starts and to Building Permits, which were reported at 1,066K permits.
The USD/SGD forecast turned bearish after a short recovery lifted it above its Tenkan-sen. US retail sales posted a massive reversal in May after a historic plunge in April. New Covid-19 cases across the US are now threatening the recovery, which could result in more depressing economic data moving forward. Singapore’s export data confirmed the global economy remains in a recession. The Ichimoku Kinko Hyo Cloud is adding downside pressure, will bears force this currency pair into a new sell-off? 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 breakout above the 1.3880 to 1.3950 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3925
- Take Profit Zone: 1.3660 – 1.3745
- Stop Loss Level: 1.4030
Should price action for the USD/SGD breakdown below 1.3950 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.4030
- Take Profit Zone: 1.4200 – 1.4260
- Stop Loss Level: 1.3950
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