USDSGD Weekly outlook for Singapore Dollar – 19th August 2021

USDSGD Outlook – Binary Options

Introduction

The emerging market has been stable as the Singapore brokers were able to dominate the market recently and the Singapore dollar made some gains against the US dollar. The Singapore government is committed to the stability of its economy and wishes to do all that it can to surge through the post-pandemic world.

Singapore Fundamentals

The Finance Minister of Singapore, Mr. Lawrence Wong says that “the post-pandemic (COVID-19) world will be different but Singapore’s fundamental goals don’t change.” He says that there is a need to continue the transformation of the country’s economy and equipping Singaporeans with competitive skills needed in this age of change.

Mr. Wong also highlights the incident of Venice, a critical trading hub in Italy that failed to adapt to changing trends which consequently affected the business and the city fell. He does not want to take Singapore’s hub for granted because of other emerging global trend threatening their position as a hub economy. To maintain connectivity to the outside world as a valid commerce hub, talent, and trade, Singapore must always maintain an open stance.

Singapore’s Core inflation rate was seen at 0.6% by the central bank price measure for April’s yearly report compared to the previous year of 0.5%

US Fundamentals

Core Retail Sales m/m 

The data on the core retail sales are released after 16 days when the month ends. 20% of the sales are on automobiles and they can be distorted to the underline trend. Therefore, the data focus on other sales at the retail level based on the total value of sales by excluding automobiles.

If the retail sales data should come out higher than the forecast, it is good for the US currency, but lower data will not be significant for the currency.

The previous data was 1.3% while the forecast was 0.2%.

USDSDG Technical Analysis

Long term Price Analysis

Monthly Outlook: Down Swing Slowing within Significant Support Area


USDSGD monthly chart - 18th August 2021

Monthly Resistance 1.40995, 1.45372, 1.34743

Monthly Supports 1.30088, 1.31644

The USDSGD pair started the uptrend movement when the Bulls took over the market from the support of 1.30088, making the price to close above the resistance levels of 1.34743 and turning them to supports for another bullish run. The bulls need another momentum to go above the 1.40995 high before reaching 1.45372 resistance. 

The Selling pressure from the 1.36868 zone may return if the Bears can close below the 1.31644 levels on the monthly chart.

Weekly 

USDSGD weekly chart - 18th August 2021

 

Weekly Resistance Levels: 1.36869, 1.36198

Weekly Support Levels: 1.34743, 134271, 1.35361

The weekly chart shows a bullish surge from the support zone of 1.34743 that led the candled to close in a hammer shape, showing buying momentum from the zones. The bull’s move was, however, rejected from the resistance zone of 1.36041, showing that sellers are within the block.

What does this mean for the Singapore brokers? 

This means that the market participants are looking for a breakout around the psychosocial zone where the USDSGD price is ranging.

If the buyers can close over the high of 1.36198, we shall see them dominate the market, but should the sellers close below 1.35361 and breakout below 1.34743 zones, we shall see the sellers take over the market.

 Daily Outlook: Bearish

Daily Resistance Levels: 1.36869, 1.36198, 1.36041

Daily Support Levels: 1.34743, 1.35361, 1.33889

The USDSGD pair has had a bullish rally after the price broke above a previous resistance zone of 1.33889, which took the price higher to the recent high of 1.36869. The uptrend market structure is likely to change if the price cannot close above the resistance level of 1.36198. We may see the sellers take away the 1.35361 zone to drop lower towards the 1.33889 support zone.

However, if the bulls can close above the resistance zones of 1.36198 and 1.36869, we shall see the uptrend continue as the price surges higher to new resistance.

Bullish Scenario:

The new week is likely going to attract some buying pressure as the bears failed to push lower into the previous week’s candle with a close. The bulls will try to take an opportunity to reverse the movement of the pair from the 1.35361 levels.

Bearish Scenario:

The sellers will hope to continue the previous move since they dominated the market recently. They will have to close below the 1.35361 zone before they can push the price of USDSGD lower.

Conclusion

Among the Emerging economy, we saw how Singapore came out of the first wave of the COVID-19 crisis while other countries had serious issues solving the crisis. China is in the race to bring down the numbers of infected persons in the country as low as possible. 

China plans to host an international event in a few months’ time. Athletics from Singapore, India, and others representing their countries will take part in the events.

It is important that the host country puts everything in place to protect the masses who are coming and those who are at home as well. China has made the COVID-19 test mandatory for everyone, they provided steps individual needs to take to prevent the spread and steps to take when an individual is infected.

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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