USDSGD Weekly outlook for Singapore Dollar – 5th November 2021

USDSGD Outlook – Binary Options

Introduction

The Singapore brokers are likely to wait for the outcome of the major news coming out of the US economy because they have high-impact news. The FOMC statements can have strong fundamentals that can change the direction of the market at any point.

Singapore Fundamentals

The Singapore economy is on a slow recovery from the COVID-19 pandemic, as we see businesses picking up at a slow pace after the restrictions were lifted. The financial and the transport hub were the most affected by the local virus-related restrictions.

According to the Singapore health ministry, about 75 new COVID-19 infections were reported. The majority of the carriers are foreign workers and they transmit it within their dormitories.

The Singapore Ministry of Trade and Industry forecasted last year that the GDP will grow about 4-6% before the year ends. The economy is recovering gradually from the worst recession. From the projections made so far by the Straits Times, the end of 2021, would be the best year since 2011 when the GDP records a growth of 6.3%.

US Fundamentals

Unemployment Rate

The jobless rate data is a lagging indicator for some market analysts. However, the out is important to the monetary policymakers and other investors as well. This week’s report is important because it focuses on the percentage of the workforce that is unemployed and actively looking for employment as of the previous month. Unemployment is significant in determining the overall health of the country. 

We understand that consumer spending is highly correlated with the labor- market. The number of unemployed is summarized in a percentage format. 

The Forecast is 4.7% while previous data was 4.8%

USDSGD Long term Price Analysis

Monthly Outlook: Bullish price recovery from significant support 

USDSGD monthly chart - 5th Nov 2021

 

Monthly Resistance 1.37005, 1.38090, 1.42986

Monthly Supports 1.33819, 1.31935, 1.31501

The USDSGD pair closed the month of October in a bearish state despite the bull’s reaction at the support level of 1.33819. However, the monthly chart pattern remains bullish, having seen the market structure maintain its bullish trend. The new month has just begun and the market participants, including Singapore brokers, do not have any clue what the market holds for them.

As the month is starting on a new week, the financial market may see low volatility in the market because of the non-farm payroll data that usually comes with a high impact. The news from the major currency may likely determine the direction of the market for the next few weeks. 

 

Weekly 

USDSGD weekly chart - 5th Nov 2021

 

Weekly Resistance Levels: 1.37000, 1.36255, 1.40170

Weekly Support Levels: 1.33800, 1.32106, 1.34190

The Singapore brokers did not see many trading activities during the previous weeks as the price could not close below the support level of 1.34190. The support level has held its zone for a while before the price bounces off from the zone.

A close above the trend line connecting the highs from the resistance shows that the correction phase is likely over on the bullish flag. The USDSGD pair will attract more traders to open long positions, which will take the price to the resistance zone of 1.40170.

Daily Outlook: Bearish

Daily Resistance Levels: 1.36130, 1.36879, 1.38000, 1.35250

Daily Support Levels: 1.33625, 1.34100, 1.33816, 1.35022

The last candlestick of the USDSGD pair closed bullish for the week and it engulfed the previous bearish candle. We may see the week continue in that momentum if we get a close above 1.35250 levels for an uptrend. With the help of a Fibonacci tool, the long position traders can ride the trend towards the 1.38000 zones if all things are equal.

On the other side of the market, the direction of price can change if the resistance level of 1.35250 can reject the bull’s advancements and we see a close below the 1.34100 and 1.33972 support levels. This action will take the price lower and the Singapore brokers will see the Singapore dollar making gains against the US dollar.

Bullish Scenario:

We expect a bullish scenario this trading week if the bullish momentum can close above the 1.35250 resistance zones for an uptrend run. A strong bullish candle is a signal for the buyers to dominate the market and ride the trend higher.

Bearish Scenario:

A bearish scenario can still take place on the daily chart, as the resistance level of 1.35250 may repel the bull’s advancement. If that should happen, the Bears will have the momentum to close lower than the support level of 1.34100.

Conclusion

The MTI reported that there has been a good sign of improvement since the last Economic survey as of 2020 November. There is substantial progress in the COVID-19 vaccine development and deployment since the authorities have approved the rolled-out vaccines used in other parts of the world.

 

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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