Source: PaxForex Premium Analytics Portal, Fundamental Insight
Singapore's Industrial Production for May increased by 1.1% monthly and 2.9% annualized. Economists predicted a rise of 1.8% and 2.0%. Forex traders can compare this to Singapore's Industrial Production for April, which surged by 7.5% monthly and contracted by 1.2% annualized.
US Final Building Permits for May are predicted to decrease by 3.8% monthly to 1.386M permits. Forex traders can compare this to US Final Building Permits for April, which dropped by 3.0% monthly to 1.440M permits.
US New Home Sales for May are predicted at 636K new homes. Forex traders can compare this to US New Home Sales for April, reported at 634K new homes.
US Crude Oil Inventories Change for the week ending June 21st are predicted to drop by 2.600M. Traders can compare this to US Crude Oil Inventories Change for the week ending June 14th, which contracted by 2.547M. US Gasoline Inventories Change for the week ending June 21st are predicted to decrease by 1.100M, and US Distillate Stocks Change by 1.500M. Traders can compare this to US Gasoline Inventories Change for the week ending June 14th, which dropped by 2.2800M, and US Distillate Stocks Change by 1.726M.
The forecast for the USD/SGD turned cautiously bearish as this currency pair drifted higher into its horizontal resistance area. Short-term volatility may increase with the Kijun-sen flat and the Tenkan-sen moving higher following a bullish crossover. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud have flatlined after a bearish crossover, adding to the risk of more volatile trading sessions ahead. Traders should also monitor the CCI in extreme overbought territory, where a negative divergence has formed. A breakdown by this technical indicator could trigger the next leg lower with plenty of downside potential. Can bears overpower bulls and regain control over the USD/SGD to 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 1.3530 to 1.3560 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3545
- Take Profit Zone: 1.3385 – 1.3420
- Stop Loss Level: 1.3585
Should price action for the USD/SGD break out above 1.3560, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3585
- Take Profit Zone: 1.3630 – 1.3670
- Stop Loss Level: 1.3560
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