USDSGD Outlook and Technical Analysis for Singapore Brokers
Last week, the USDSGD closed bearish at 0.02% forming what is popularly known as a spinning top pattern among candlestick followers, after four consecutive bullish closing bars from previous weeks.
This week like in the past, we’ll be identifying significant macroeconomic news announcements and technical price patterns driving the USDSGD pair on Binomo broker.
The Consumer Price Index (CPI) is a gauge of the shifts in the price of goods and services from the viewpoint of the consumer. It is one of the most significant determinants of changes in purchasing trends and inflation.
A climb in CPI may prompt an improvement in interest rates and a growing local currency. During a recession, however, a climb in CPI may prompt a deepened recession; as a result, a drop in local currency.
Most recent data released on July 23 shows the actual reading at 0.6%, forecast data at 0.77%, while the previous reading was 0.99%. These figures indicate a slightly bearish sentiment for the currency.
Sales of New Homes
The New Home Sales indicator shows the number of sales of new homes annually in the U.S, noting seasonal variations. Drawn from statistics on new house sales, the indicator is of high value in evaluating the health of the economy, as the purchase of a new home signifies confidence in the economy.
A higher than expected reading suggests a bullish/optimistic sentiment for the currency, while a less than expected index signifies a bearish trend for the USD.
Most recent release on July 24 shows that previous reading was 604K, while actual reading was pegged at 646K. Forecast figure was 660k suggesting a bullish/positive inclination for the USD.
USDSGD Technical Analysis
USDSGD Long term Projection: Bullish Swings
USDSGD: Weekly Chart
The bullish engulfing candlestick pattern on July 01 ’19 sets support at 1.35123, which is also a higher low for a bullish trend line that led to a 2.27% price increase. Earlier bullish and bearish swings on March 25 ’19 and May 27 ’19 are significant for the formation of the bullish trend.
A breach of either the Doji high or low may give clarity to either a trend reversal or continuation of the bullish price rally.
USDSGD Medium Term Projections:
USDSGD Daily Chart
The above daily chart illustration reveals a buildup of the mid-term bullish trend, starting from a rejection of resistance on July 01, 05, and 17 ’19. The buying pressure persisted after a breakout of significant opposition at 1.36246 and a further increase in buying power on July 30 ’19.
As the RSI makes lower peaks, the USD to SGD foreign exchange rate made higher peaks, signaling a regular bullish divergence on August 16 ’19.
We should expect a correction of the earlier gains by the bulls as we enter the week.
USDSGD H4 Chart
Above, the 4hour chart of the USDSGD signals a bear trap price pattern followed by a breakout of a crucial resistance level. From this view, the USDSGD is enclosed in a rising channel built from both bullish and bearish divergence patterns.
The recent is a hidden bullish divergence pattern flagged on August 18 ’19 16:00. A price close below the 1.38403 support should define an end to the expected bullish trend.
USDMXN Short Term Projections:
USDSGD H2 Chart
Although the USDSGD appears to be in a range-bound market, the bears show more dominance here as they signal regular bearish divergence patterns on August 12, 13, and 15. The bullish activity was also noticed on August 13 18:00 following a breakout of resistance that led to a % price increase.
Conclusion and Projection
As the higher and medium time frames show overbought signals for the USDSGD, the intraday charts show a possible increase in strength for the Singapore dollar following a recent failure of support on August 19 20:00.
I've been a professional trader for over 5 years.
Currently I work as forex analyst for different investment companies.
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