USDSGD Weekly outlook for Singapore Dollar – 29th October 2021

USDSGD Outlook – Binary Options

Introduction

The top Singapore brokers are likely to see the trend change on the weekly chart if the support zones are rejecting the downward pricing of the pair. Fundamental feeds from Singapore’s economy will determine the future of the currency. 

The government is ready to open up the business hubs around the country by making it easier for investors, tourists, and other family members to visit the country.

Singapore Fundamentals

There are eight countries that Singapore’s authorities have expanded their quarantine-free program. The countries include the United States of America, France, Italy, Canada, Britain, Denmark, Netherlands, and Spain. The government plans to ease restrictions to its foreign counterparts in business as they plan to live with the COVID-19 crisis. 

The plan to revive the business hub and the economy is key for the authorities as Prime Minister Lee Hsien Loong said that “Singapore cannot be locked down and closed off indefinite “. 

Living with COVID-19 strategy is the plan to revere the business as tourism accounts for about 6% of the GDP, according to Song Seng Wun. Visiting tourists are about 1.6 million in numbers monthly and the airport handles over a thousand flights daily before the pandemic, but it is currently around 320 flights a day.

For passengers who are fully vaccinated and tested negative for the virus will not be quarantined when they arrive and before they depart. Families with children under age 12 who are unvaccinated are allowed to travel with someone under the scheme.

US Fundamentals

Core Durable Goods Orders m/m 

The core durable goods exclude items on transportation during its analysis but on the total change of new purchases that are placed with manufacturers for the durable goods by comparing the changes within a specific time.

The Factory orders report is usually reviewed weekly after excluding the orders for aircraft which are volatile and can distort the underlining trend of the market. Therefore, the core data is the most appropriate gauge of purchase. It is a leading indicator of production because manufacturers increase their activities to fill in orders from customers.

USDSGD Technical Analysis

Monthly Outlook: Exits Oversold and bounce off Significant Support 

USDSGD monthly chart - 29th Oct 2021

 

Monthly Resistance 1.36864, 1.41306, 1.44062

Monthly Supports 1.33575, 1.31517, 1.31365

The monthly candlestick in June signals the introduction of Bulls dominating the market because it closed in an engulfing format to push price out of the support zones of 1.31365 and 1.31517. 

In the past three months, we can see that the USDSGD pair has been consolidating after the impulsive move. If the pair can hold the support zone around 1.33575, we may see the price surge higher to close above the various resistance levels before the year ends. The selling pressure can come to play if the price closes below the supports of 1.33575 to retest the lower lows again.

Weekly 

 

Weekly Resistance Levels: 1.464630, 1.42722, 1.36930

Weekly Support Levels: 1.330, 1.31578

A W pattern is forming around the support level of 1.31887 and 1.32106, which is likely going to reverse the downward trend into an uptrend as the long position traders are expecting the price of the USDSGD pair to find another support for 1.33650 price so that the next surge can take out the high of 1.36968 for the trend to be bullish and aim the next resistance zone of 1.40170. 

At the moment, the pressure is on the support zones of 1.33650, and if the zone is to give way, we are likely going to see the Singapore brokers opening more orders to go short to retest the lower support levels of 1.32106 and 1.31887.

Daily Outlook: Bearish

Daily Resistance Levels: 1.36931

Daily Support Levels: 1.34737, 1.33971, 1.31895

The USDSGD pair bullish swing started from the support area of 1.31861. The price has been ranging between the high of 1.36464 and the low of 1.33625 in a correction pattern. When the correction phase is over, we expect the uptrend to resume its direction.

Technically, if the Correction pattern should close below the support zone of 1.33625, then the market structure will favor Singapore brokers who are holding on to their short position in the financial market. If the short option does not work out, we may see the long position traders placing orders from the zones for a bullish run.

 

Bullish Scenario:

The Bulls will need a strong pattern on the daily time frame for it to win Singapore brokers to open a long position on the USDSGD pair because we are seeing a retest in the support zones on the daily time frame. A stronger rejection from the support will trigger the buying pressure.

Bearish Scenario:

The sellers have been riding the downtrend on the daily chart when the price was rejected at the high of 1.36281 given a double top market structure which has taken the price down. A retest on the support level will determine the next phase of the market for either a breakout below or a bounce to create a double bottom structure.

Conclusion

The Singapore brokers were encouraged to know that the Singapore government will live with the COVID-19 crisis by providing a way around it because the economy has to be opened for it to survive amid the economic crunch.

The USDSGD pair still has potential abilities to surge higher on the weekly time if the Bulls can dominate the support level from 1.33650 zones.

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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