USDSGD Weekly outlook for Singapore Dollar – 29th April 2022

Introduction

The Asian market got the news of another lockdown in China and this will likely affect the international business within the emerging economy. Best Singapore trading platforms will be paying attention to the Chinese market and how its decision tells on the Singapore business, and USDSGD forecast.

Singapore Fundamentals

Reports from Barclays analysis, expect the Singapore economy to have a big jump after the COVID-19 measures were lifted. The Barclay analyst expects the GDP to rise by 3-4 percent according to the senior regional economists. About 4% of the GDP can be added to the economy through international traveling.

As the COVID-19 measures have been lifted, and the economy is recovering, the next stage of attention will be on the monetary authority of Singapore and how it intends to implement an aggressive policy on interest rates this month.

According to Tan, he hopes that the steps they are taken will be good for the economy.

US Fundamentals

Unemployment claims

The unemployment claims focus on the numbers of individuals who have officially filed for insurance for the first time in the week. The figure influences the currency because a lower record is a good economy.

The monetary policymakers also follow the outcome of the report. An unemployment report is important in determining the overall health of the country, market participants understand that consumer spending is highly correlated with the labor- market. 

The Forecast is 178K while the previous data was 184K.

USDSGD Technical Analysig term Price Analysis

Monthly Outlook: Down Swing Slowing within Significant Support Area

Monthly Resistance 1.38736, 1.42986

Monthly Supports 1.33727, 1.31935, 1.31501

The Buyers have dominated the USDSGD pair from the support zone of 1.33727 when 2022 02 01 candlesticks rejected the bear’s pressures away from the zones. The buyers have been pushing the price higher since the market lost its drive due to the COVID-19 pandemic.

If the momentum is increased by the Bulls, and the price of the pair can breakout above the resistance zones of 1.39260, the Bulls are likely to take the price back to the pre-covid-19 pandemic high of 2020-03-01 (.46460).

Weekly 

Weekly Resistance Levels: 1.39865, 1.38055.

Weekly Support Levels: 1.34000, 1.32100, 1.35000.

The USDSGD pair is technically on an uptrend on the weekly chart as you can see how the price started creating higher highs after establishing support around the 1.31910 zones. Singapore brokers may likely see the price rise higher as the pair is recovering from the pre-Covid-19 pandemic.

The war going on in Ukraine has also affected the emerging markets as their currencies fall and the recession crisis is also of concern as risks on geopolitics are weighed. As the price hits the resistance level of 1.38055, we expect the price to pull back before a breakout above for the uptrend to continue. 

However, if the sellers can overturn the market forces to their advantage, we can see the price drops lower to ward off the support level of 1.35000

Daily Outlook: Bearish

Daily Resistance Levels: 1.36880, 1.37220, 1.38735.

Daily Support Levels: 1.33625, 1.34100, 1.33816, 1.35022

From the daily chart, we can see the USDSGD pair closed the previous trading week on a bullish note as they closed above some resistance zones. The bullish run is like to continue its bullish rally for the week as the uptrend momentum pushes the price above the 2021-11-26 highs on the daily time frame. 

As the price of USDSGD is rising, the price will be faced with vertical resistance zones as you connect the highs from the previous tops on the chart. If the price shows some weakness around the resistance zones, the price will retrace to retest the previous resistance that was broken for it to be a support.

 Singapore brokers who anticipate the uptrend to continue will wait for the price of the pair to retest the previous resistance turned support if that level does not give way for the short position traders when the price drops around the zone.

Bullish Scenario:

A bullish scenario is expected this trading week as the bullish momentum continues from the previous week’s close. A strong bullish run is expected for the new trading week to continue the bullish run.

Bearish Scenario:

A bearish scenario can take place around the daily chart resistance level of 1.38735 or lower when the bulls fail to advance above these zones. However, if the price of the USDSDG pair drops, the sellers will have the momentum to take the price to the support level of 1.36880.

USDSGD Conclusion

The Chines market is also an important influencer in the Asian market among other countries. The news reaching Singapore brokers that the Chinese authorities are locking down their economic activities due to the Covid-19 outbreak and the rise in the number of infected persons. 

The Bullish run is expected to continue to run until the weekly resistance level of 1.38735 is tested.