USDSGD Outlook – Binary Options
Last month’s bullish close of the USDSGD suggest growing demand for the Greenback against the Singapore dollar as most emerging Asian currencies experience a beat down in the currency market. Binary options brokers are likely to see another major shift in direction of the pair as the month ends soon.
The Singapore Preliminary data shows that the Singapore economy has grown about 6.6% compared to the previous year according to the median of 1 forecast versus 14.5% after the stricter curbs of COVID-19 cases. Despite the COVID-19 variants, the government has decided to stay on course.
According to the Singapore records, the COVID-19 cases hit its 1 year high and the authorities have started with the third covid-19 vaccine doses as the country is still battling with the resurgence of the infection despite the double jabs that over 80% of the residents have received.
CORE PCE Price Index m/m
The report focuses on individuals and on the changes of prices on goods and services that are purchased by individual consumers, also excluding food and energy. The Core PCE differs from core CPI because its focus is on pricing towards the total expenditure per item that also gives an insight into consumers’ spending psychology.
An outcome higher than the forecast is good for the currency but a lower outcome is not favorable to the US dollar.
The Forecast is 0.4% while previous data was 0.2%
USDSGD Technical Analysis
Monthly Outlook: Down Swing Slowing within Significant Support Area
Monthly Resistance 1.36510, 1.38094, 1.36934
Monthly Supports 1.33785, 1.34110,
The reaction of the long position on the USDSGD pair must have surprised many Singapore brokers because the expectations of traders were for the pair to trade bearish after the previous month closed in a bearish candle.
The solid economic momentum from the US feeds shows that investors are shifting their investment to a stronger economy. This month, the USDSGD pair did 1.49% from the low to the current high of the market. A close above the resistance of 1.36934 and 1.36510 will expose the higher zone of 1.38094 in the future.
However, if the sellers can reject the buyer’s attempt from the high of those resistances, we may see the price drop lower from those areas to retest the lows of 1.33785.
Weekly Resistance Levels: 1.37087, 1.36350.
Weekly Support Levels: 1.34110, 1.33786.
The USDSGD pair closed last trading week with a strong bullish candle around the resistance levels of 1.36350. This move is an indication that there is a possibility that the buyers may likely close above the zone in the next trading week if the buyers can keep the bullish momentum. A strong fundamental from the US economic data may cause the breakout above the resistance zones if we see a rejection of the price from the zones.
A rejection around the zone will likely reverse the market and the Singapore brokers will be in favor to hold on to their short positions for some weeks if all things work out according to plan.
Daily Outlook: bullish
Daily Resistance Levels: 1.36350, 1.37085.
Daily Support Levels: 1.33786, 1.34100.
On the daily chart, we can see that the USDSGD pair is retesting the resistance zones of 1.36350 and 1.37085. If the Bullish run can close above the zones, we shall see the price rise higher and higher in the coming days.
However, if the chart pattern shows rejections of candles with longer wicks, we may likely see the zone creates a double top for a reversal on the daily time frame which will strengthen the Singapore dollar.
If the Bulls still have momentum in this new trading week, we may see the bullish scenario continue to breakout above the resistance zones. A close above 1.37085 will take the price upwards.
A bearish scenario can happen if the resistance level of 1.35250 can reject the bullish surge in the coming days. A double top chart pattern is a reversal signal for the price to drop lower on the chart.
The USDSGD pair is bullish on the weekly chart. The report shows that is a higher possibility for the price to surge higher as the US economy continues to release stronger economic activities.
The third vaccine injection may help to reduce the spread of the virus as the Singapore authorities rollout the COVID-19 vaccine Plan.
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