Source: PaxForex Premium Analytics Portal, Fundamental Insight
Singapore Bank Lending for August came in at S$842.8 billion. Forex traders can compare this to Singapore Bank Lending for July, reported at S$838.0 billion.
US Personal Income for August is predicted to increase 0.3% monthly, and Personal Spending by 0.2% monthly. Forex traders can compare this to Personal Income for July, which rose 0.2% monthly, and to Personal Spending, which increased 0.1% monthly. The PCE Core Deflator for August is predicted to increase 0.5% monthly and 4.7% annualized. Forex traders can compare this to the PCE Core Deflator for July, which rose 0.1% monthly and 4.6% annualized.
The US Chicago PMI for September is predicted at 51.8. Forex traders can compare this to the US Chicago PMI for August, reported at 52.2.
The final US Michigan Consumer Confidence for September is predicted at 59.5. Forex traders can compare this to US Michigan Consumer Confidence for August, reported at 58.2.
US Quarterly Grains Stocks for the third quarter for wheat are predicted at 1.776B, corn at 1.512B, and soy at 0.242B. Forex traders can compare this to US Quarterly Grains Stocks for the third quarter for wheat, reported at 0.660B, corn at 4.346B, and soy at 0.971B.
Volatility is expected to increase as the trading week, month, and third quarter close. Portfolio managers could adjust positions, and the bear market should finish on a strong note. Speeches by US Federal Reserve members Brainard, Mester, Williams, and Bowman could repeat the hawkish message to fight inflation, with interest rates in the US set to increase to between 4.50% and 5.50% by 2023. The final second-quarter GDP reading released yesterday showed an upward revision to inflation, despite a plunge in energy costs. It confirms that inflation is deeply anchored in the financial system, with all sectors affected.
The forecast for the USD/SGD remains bearish after the horizontal resistance area rejected this currency pair. Volatility should increase with the Ichimoku Kinko Hyo Cloud showing a flat Senkou Span B and an ascending Senkou Span A. Confirming the absence of bullishness is the Kijun-sen and the Tenkan-sen, with both flatlining. Traders should monitor the CCI after it has completed a breakdown from extreme overbought conditions. A move below zero could spark a reversal in the uptrend, and this technical indicator has plenty of downside potential. Can bears overpower bulls and take control of the USD/SGD before driving it 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 1.4265 to 1.4380 zone, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 1.4315
- Take Profit Zone: 1.3960 – 1.4045
- Stop Loss Level: 1.4480
Should price action for the USD/SGD breakout above 1.4380, PaxForex recommends the following trade set-up:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 1.4480
- Take Profit Zone: 1.4625 – 1.4480
- Stop Loss Level: 1.4380
Open your PaxForex Trading Account now and add this currency pair to your forex portfolio.
