Source: PaxForex Premium Analytics Portal, Fundamental Insight
The advanced Singapore GDP for the third quarter increased by 7.9% quarterly and decreased by 7.0% annualized. Economists predicted an increase of 35.3% and a decrease of 6.8% annualized. Forex traders can compare this to the Singapore GDP for the second quarter, which decreased by 13.2% quarterly and by 13.3% annualized.
The US PPI for September is predicted to increase by 0.2% monthly and by 0.2% annualized. Forex traders can compare this to the US PPI for August, which increased by 0.3% monthly, and which decreased by 0.2% annualized. The US Core PPI for September is predicted to increase by 0.2% monthly and by 0.9% annualized. Forex traders can compare this to the US Core PPI for August, which increased by 0.4% monthly and by 0.6% annualized.
The forecast for the USD/SGD remains bearish after the descending Tenkan-sen ended a minor drift to the upside. Despite the disappointment in the Singapore third-quarter GDP report, downside pressure remains due to a weakening US Dollar. Another Covid-19 vaccine, this time from Eli Lilly, was suspended, just one day after Johnson & Johnson announced a halt. The downward sloping Ichimoku Kinko Hyo Cloud keeps bulls in check, with the flatlining Kijun-sen enforcing the Senkou Span A. The CCI moved out of oversold conditions but is in negative territory. Will bears continue to pressure for more downside? 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 1.3550 to 1.3600 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3575
- Take Profit Zone: 1.3435 – 1.3470
- Stop Loss Level: 1.3650
Should price action for the USD/SGD breakout above 1.3600 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3650
- Take Profit Zone: 1.3720 – 1.3760
- Stop Loss Level: 1.3600
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