Singapore Retail Sales for March decreased by 1.3% monthly and by 13.3% annualized. Forex traders can compare this to Singapore Retail Sales for February, which decreased by 8.4% monthly and 8.4% annualized. The US Trade Balance for March is predicted at -$44.0B. Forex traders can compare this to the US Trade Balance for February, which was reported at -$39.9B. The US Final Markit Services PMI for April is predicted at 27.0, and the US Final Markit Composite PMI is predicted at 27.4. Forex traders can compare this to the US Markit Services PMI for March, which was reported at 39.8 and to the US Markit Composite PMI, which was reported at 40.9. The US ISM Non-Manufacturing PMI for April is predicted at 36.8. Forex traders can compare this to the US ISM Non-Manufacturing PMI for March, which was reported at 52.5.
The USD/SGD forecast is bearish as US data surprises economists to the downside. The impact of the global Covid-19 pandemic is more negative than the most pessimistic outlooks on the street. Singapore was initially praised for its response to the virus, only to see new infections spike. Retail sales this morning confirmed depressed consumer spending, but price action remains inside the Ichimoku Kinko Hyo cloud, confirming massive resistance. Will US data add to the string of disappointments and offer bears the awaited push for more selling? 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 1.4100 to 1.4190 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.4120
- Take Profit Zone: 1.3680 – 1.3785
- Stop Loss Level: 1.4230
Should price action for the USD/SGD breakout above 1.4190 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.4230
- Take Profit Zone: 1.4400 – 1.4490
- Stop Loss Level: 1.4190
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