USDSGD – Weekly outlook – April 12 2019

USDSGD Technical Analysis for Singapore binary options 

Introduction

Starting from the first quarter of 2019, previous three-month gains of the Singapore dollar is currently threatened by a main bullish setup from a monthly chart perspective. Join us as we take you on a tour of important fundamental indicators as well as technical price patterns that hint on potential trend direction. 

Singapore Fundamentals 

Singapore Dollar: Gross Domestic Product 

The Department of Statistics in Singapore will be releasing the GDP, which is a measure of the value of goods and services generated in the nation. As a way to gauge the capacity of the economy, the previous value was at 1.4% and 1.2% for consensus.

Singapore Dollar: Retail Sales

Singapore’s Department of Statistics will again release the data for Retail sales today Friday, April 12 ’19, an indicator that presents relevant information on consumer spending which is the consumption portion of the nation’s GDP. 

Growth in the Singapore economy can be attributed to a rise in retail sales. Previously, the reading was at 0.2% at a consensus of 1.5%.

United States Fundamentals 

FOMC Minutes

The FOMC defines suitable monetary policy as well as evaluate economic and financial conditions. The Board of Governors of the Federal Reserve release the FOMC minutes in an effort to offer a standard to coming US interest rate policy.

Monthly Budget Statement

A report of the financial actions of Federal Reserve banks, paying officers, and federal entities were circulated by the Financial Management Service. Bullish sentiment for the USD is registered when budget statement receipts beat budgetary outlay, while a deficit indicating government debt is viewed as bearish for the USD. The actual value was released as -147B which is negative for the USD, compared to the previous at -$234B, and consensus at $-180B.

Technical Analysis

USDSGD Monthly Chart

USDSGD - Monthly chart -April 12 2019

Following a failure of bullish pressure on November ’17, that led to a 3.5% decline in foreign exchange of the USDSGD, showing a stronger Singapore dollar, the broke out of hidden bearish pressure on May ’18, eroding the gains of the SGD by about 6.58%. Consecutive bearish closing candles that started from the last quarter of 2018, caused resulted in a 50.0% retracement of the bullish swing.   A bullish accumulation pattern signaled on the 50% Fibonacci level shows speculative demand in favor of the USD.

USDSGD: Weekly Chart

A view from the weekly chart highlights a bearish accumulation pattern on 15 October ’18 , responsible for the string of bearish closing candles on the monthly chart with resistance at 1.38214. Failure of price to close above this resistance level resulted into the current bearish decline.

Countering the bearish trend is a breakout of bearish pressure, recently formed at 25 March ’19 establishing strong support at 1.34541.

USDSGD Daily Chart

As shown above the USDSGD is currently in a range, which started from triggered bullish and bearish divergence patterns on 01 February ’19 and 18 February ’19. The price continued oscillating with alternating consecutive bullish and bearish closing candles on 28 February ’19, 11 March ’19, 26 March ’19, and 04 April ’19.

USDSGD H4 Chart

The consecutive bullish closing candles that started on 08 March ’19 06:00 of the daily chart was initialized by a collapse of bullish pressure on the 4hour chart establishing resistance at 1.36144. Further price decent was triggered by double bearish accumulation on 14 March ’19 21:00 for a price decline of 0.75%.  

An opposing breach of bearish accumulation on 21 March ’19 01:00 signaled the end of the bearish price decent and a bullish trend.

Conclusion and Projection

Prior to publishing this post, the pair signaled a bearish accumulation on 12 April ’19 01:00 of the 4hour chart retracing the gains of the USD which was earlier triggered by a bullish accumulation on 10 April ’19 21:00.

In the long term, the USDSGD is building up a bullish trend which signals bearish sentiment for the Singapore dollar. A collapse of the bullish accumulation support of 1.34541 signals a bullish recovery for the SGD on major binary broker platforms like OlympTrade. 

James Martin

I'm based in London ( England, UK )
I've been a professional trader for over 5 years.
Currently I work as forex analyst for different investment companies.

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