USD/SGD- Weekly Analysis for Brokers in Singapore
The Singapore Dollar also benefited from the selloff in the US Dollar last week after the Fed delivered a rather dovish rate hike, much more dovish in fact than what traders and brokers in Singapore have been expecting. This drove the USDSGD pair 150 pips down for the day – hitting a fresh four-month low.
This and the next week will be calmer with not many market moving events lined up on the calendar. Therefore, most likely the US Dollar will remain under pressure in this near term, at least until the beginning of April when fresh US economic data will start to come out. And then traders will reassess the US economy and the value of the USDSGD pair. You can choose among the best brokers in Singapore to trade the USDSGD pair.
Several Fed Presidents will speak during this week, including chairwoman Jannet Yellen. However their speeches will not be directly on the topic of monetary policy or interest rates so it’s unlikely that they will feel an urge to talk about then given that they pretty clearly publicly stated their views just 7 days ago in the FOMC statement – They are dovish for now and don’t want to rush with rate hikes.
The consumer price index (CPI) will be released from Singapore on Thursday. Brokers in Singapore expect that a higher than expected release should give a boost to USDSGD.
The downward channel we showed two weeks ago is still intact and USDSGD has declined to 1.3950 and with that forming a minor double bottom. There are basing and bullish signs at 1.3950 however still not fully confirmed. Primarily, significant bullish momentum is lacking.
In fact, the US Dollar momentum is currently bearish so with that in mind a dip lower seems more likely. In this scenario, brokers in Singapore expect the next support to be the support trendline of the channel or if it doesn;t hold then 1.38 looks like the next make or break support level.
If however, price reverses on the ongoing double bottom then we will find resistance to the upside at the top of the channel – 1.4150.
USDSGD Daily chart – Basing signs present but not a bottom is not confirmed yet
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