Source: PaxForex Premium Analytics Portal, Fundamental Insight
The Singapore Trade Balance for October came in at $4.071B. Forex traders can compare this to the Singapore Balance for September, reported at $5.783B. Non-Oil Exports for October decreased by 3.7% monthly and 5.6% annualized. Economists predicted a drop of 2.3% and 0.6%. Forex traders can compare this to Non-Oil Exports for September, which contracted 3.9% monthly and expanded by 3.1% annualized.
US Housing Starts for October are predicted at 1,410K starts, and Building Permits at 1,512K permits. Forex traders can compare this to US Housing Starts for September, reported at 1,439K starts, and Building Permits at 1,564K permits.
US Initial Jobless Claims for the week of November 12th are predicted at 225K, and US Continuing Claims for the week of November 5th are predicted at 1,500K. Forex traders can compare this to US Initial Jobless Claims for the week of November 5th, reported at 225K, and US Continuing Claims for the week of October 29th, reported at 1,493K.
The Philadelphia Fed Manufacturing Index for November is predicted at -6.2. Forex traders can compare this to the Philadelphia Fed Manufacturing Index for October, reported at -8.7.
US Natural Gas Inventories for the week ending November 11th are predicted at 63B cubic feet. Traders can compare this to US Natural Gas Inventories for the week ending November 4th, reported at 79B cubic feet.
After yesterday’s better-than-expected retail sales report and comments by US Fed member Daly about ongoing interest rate increases to a range between 4.75% and 5.25%, with a potential for higher rates, traders will get comments today from US Fed members Bowman and Jefferson. Daly confirmed that a pause in rate hikes is not part of the discussion and that the Fed will keep interest rates higher for longer.
The forecast for the USD/SGD remains bearish but could experience a temporary counter-trend advance as bulls and bears fight for control over the next move. Adding to the longer-term negative outlook is the bearish crossover in the Ichimoku Kinko Hyo Cloud, which unfolded earlier this week. Confirming strong bearish pressures are the descending Tenkan-sen and Kijun-sen. Traders should monitor the CCI after it has recorded a lower low followed by a breakout from extreme oversold territory. This technical indicator may drift higher in the short term but is unlikely to breach the zero level before resuming its downtrend to a potential 2022 low. Can bears continue their dominance over price action following a nearly 1,000+ pips correction and pressure the USD/SGD into its horizontal support area 350+ pips away? 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 1.3685 to 1.3765 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3710
- Take Profit Zone: 1.3365 – 1.3455
- Stop Loss Level: 1.3835
Should price action for the USD/SGD breakout above 1.3765, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3835
- Take Profit Zone: 1.3970 – 1.4045
- Stop Loss Level: 1.3765
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