USDSGD Technical Analysis for Singapore Brokers
The Singaporean trader could only hope for a better recovery of the foreign exchange rate for USDSGD since the beginning of the world crisis on coronavirus pandemic.
Due to the rate at which the coronavirus destabilizes the economy, there has been uncertainty on trading platforms such as IQ Option.
Let us look into the chart for answers to our fundamental questions.
The Singapore government expects its GDP to shrink between 1% and 4% if the coronavirus outbreak pandemic lingers on. The uncertainty of the control over COVID-19 may affect the way consumers and businesses will behave towards spending, keeping in mind that businesses are lost due to restriction of movement both at home and abroad.
U.S. ISM MANUFACTURING PMI
This data is from the Institute for Supply management, measuring the level of diffusion index in the manufacturing industry. These reports are based on the purchasing managers’ survey of how the company’s view of the economy.
On May 1st, the ISM report will be released, and if the Actual is higher than the forecast, it will suggest bullish sentiment. If otherwise, we shall see the bearish sentiment taking over.
The forecasted report is 36.7 while previous data is 49.1
USDSGD Technical Analysis
USDSGD Long term Outlook: Bullish
Monthly Resistance Levels: 1.46470, 1.41790, 1.32854, 1.39422
Monthly Support Levels: 1.34450
The USDSGD has enjoyed a robust bullish rally for some months before rejection of price at the resistance level of 1.46470. The bull’s momentum has weakened for this month; also, this last week of the month will confirm a definite answer as to which direction price will choose, considering the regular bearish divergence and bullish accumulation resistance and support that was sported.
The foreign exchange in the global market is still volatile due to the coronavirus crisis. The Singapore broker awaits firm fundamental news to see price move in the direction of certainty.
Weekly Resistance Levels: 1.34876, 1.39422, 1.46470
Weekly Support Levels: 1.38616, 1.42083, 1.37587, 1.34450
For some weeks, the bearish candles are closing lower after a bullish candle, showing a sign of strength for the bears and the stochastic shows price at the overbought level.
USDSGD Medium Term Outlook: Bullish
Daily Resistance Levels: 1.40877, 1.46470
Daily Support Levels: 1.34450, 1.37587, 1.42494, 1.35682, 1.39781
The bears pushed the USDSGD down for some days to the support level of 1.42494 after the bearish engulfing candle was established at the resistance zone of 1.46470.
In a scenario where the support fails to hold, we can see the foreign exchange of Singapore gaining strength against the dollar, (USDSGD) drops to the low of 1.37587.
However, if the current support should hold, we may see the price rises back to the 1.46470 level.
4Hour Resistance Levels: 1.4647, 1.44844, 1.44193, 1.45138, 1.42965
4Hour Support Levels: 1.42586, 1.43558, 1.44691, 1.42083, 1.4565
From the H4 Time frame, you can see that the bears are currently in control of the USDSGD down trend swing of higher lows and lower lows. A push below the support of 1.42083 will expose the next level of support.
The bulls will wait for the price to retest the support level of 1.4182 to rally the USDSGD back to the upside where the initial momentum took place previously. Right now, there are few buyers in the market.
If the current bearish momentum can be sustained and the low taken out, it will increase the pressure to push the price down as low as possible.
The Covid-19 Pandemic real took the world by surprise and made the foreign exchange unstable for the currency pair (USDSGD). Singapore brokers are watching the response of the market after various stimuli injected into the financial market.
As the month comes to an end this week, key levels of support and resistance must be broken; therefore, it’s more of a waiting game for various players in the market.
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