Source: PaxForex Premium Analytics Portal, Fundamental Insight
Singapore Industrial Production for August increased by 13.9% monthly and by 13.7% annualized. Economists predicted an increase of 2.6% and 4.6%. Forex traders can compare this to Singapore Industrial Production for July, which increased by 2.3% monthly, and which decreased by 7.6% annualized. US Preliminary Durable Goods Orders for August are predicted to increase by 1.5% monthly, and Durables Excluding Transportation are predicted to increase by 1.2% monthly. Forex traders can compare this to US Durable Goods Orders for July, which increased by 11.4% monthly, and to Durables Excluding Transportation, which increased by 2.6% monthly.
The USD/SGD advanced into its Ichimoku Kinko Hyo Cloud, where it faces resistance, and the CCI indicates extreme overbought conditions above the 100 level. With the US reporting weaker than expected economic data, this currency pair has limited upside potential from current levels. Covid-19 infections are increasing globally, threatening to pose a longer bearish driver for global trade.
The forecast for the USD/SGD turned bearish after its most-recent price surge. The Kijun-sen and Tenkan-sen started to flatline, suggesting bearish momentum is weak. Forex traders will receive US durable goods data for August, after a surprise increase in Singapore industrial production. Will bears get the fuel they need to force a 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 breakdown below the 1.3730 to 1.3770 zone the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.3745
- Take Profit Zone: 1.3525 – 1.3575
- Stop Loss Level: 1.3800
Should price action for the USD/SGD breakout above 1.3770 the following trade set-up is recommended:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.3800
- Take Profit Zone: 1.3860 – 1.3900
- Stop Loss Level: 1.3770
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
