USDSGD Weekly outlook for Singapore Dollar – June 10 2020

USDSGD Technical Analysis for Singapore binary options

Introduction

The recent news released from the US on the non-farm payroll report with a surprising gain of 2509K Jobs shows the recovery process of the economy.

The Singapore nation has been a hub for trades, investments, and the financial market long before the Covid-19 crisis began. Since the lockdown started, the government does not see it connecting to the global economy openly as before the pandemic.

The USDSGD shows an increase in demand for the Singdollar on OlympTrade platform. Let’s take a plunge into the technical charts as well as the fundamental events driving the pair for the week.

Singapore Fundamentals

The government’s primary concern is how to control the rise of unemployment among her citizens, how they can keep and attract businesses and investments to contribute to its recovery of the economy. 

The SG government is spending $66.7 billion about 20% of its gross domestic product as part of its economic response in helping workers stay in their jobs and businesses to sustain itself and the workforce since the fallout of the COVID-19. 

U.S. Fundamentals

The Core CPI data to be released will also help the government understand the effects of the recovery plan that has worked out from the report gotten from the public in relation to the change of price of goods and services purchased by consumers excluding the energy and food. 
This will help the central bank check the inflation rate in the system by raising or reducing the interest rates as a containment approach.

If the Actual data to be released is more significant than forecast, it is good for the currency, while if it is lower than the estimate, it is not good for the currency.

Forecast 0.0% and Previous -0.4%

USDSGD Technical Analysis

USDSGD Long-term Outlook: Bearish

Monthly Chart

UGDUSD Forecast - Monthly Chart - June 10 2020

Monthly Resistance Levels: 1.46470, 1.41790, 1.32854, 1.39422

 Monthly Support Levels: 1.34415, 1.34435, 1.32854

 The USDSGD bearish divergence has been building since 02 March 2020, after rejecting the bulls’ rally that started from the support zone of 1.34415 with the double bottom 01 January 2020. 

The bears have pushed the price down after the bullish accumulation support of 01 May 2020 was taking out, and the Bears kept pushing down the USDSGD. 

It is a good strength for the foreign exchange of Singapore dollar country, and it will build more confidence in the economy and bring more investors.

Weekly Chart

UGDUSD Forecast - Weekly Chart - June 10 2020

Monthly Resistance Levels: 1.46470, 1.41790, 1.32854, 1.39422

 Monthly Support Levels: 1.34415, 1.34435, 1.32854

 The USDSGD bearish divergence has been building since 02 March 2020, after rejecting the bulls’ rally that started from the support zone of 1.34415 with the double bottom 01 January 2020. 

The bears have pushed the price down after the bullish accumulation support of 01 May 2020 was taking out, and the Bears kept pushing down the USDSGD. 

It is a good strength for the foreign exchange of Singapore dollar country, and it will build more confidence in the economy and bring more investors.

USDSGD Medium-Term Outlook: Bearish  

Daily Chart

Daily Resistance Levels: 1.40877, 1.46470

Daily Support Levels: 1.34450, 1.37587, 1.42494, 1.35682, 1.39781

The Singapore brokers witnessed a bullish surge in the USDSGD after bull rail tack of 09 March 2020 (1.37598), signaling a reversal of the trend to the upside, and the Bulls gained 5.81% in 14 days of its surge upwards.

The Bears could regain control by pushing the price down with a continuous establishment of lower highs and lower lows. The inside bars’ resistance of 03 April, 21 April, and 15 May 2020 shows the bears’ sustained strength pushing price down.

As at the writing of this report, the price is at 1.39350, approaching the bear trap support of 09 March 2020 (1.37598), which will be a psychological zone for the Bulls and Bears. 

A close below the zone could further increase the selling pressure, and a failure may bring back the bulls into the market. This aspect will be more evident in the coming days.

H4 Chart

4Hour Resistance Levels: 1.43292, 1.42847, 1.42156, 1.4192, 

4Hour Support Levels: 1.39082, 1.40706, 1.41210, 1.41327

The divergence has been the major tool for the investors in understanding the behavioural pattern of USDSGD in the recent Hours of the market.

The support zone of 1.40706, 1.41210, and 1.41327 has been a strong area for the bulls. 

The bearish divergence on 17.05.2020 took the price of USDSGD down after the resistance zone of 1.42847 held; the bears pushed back the bull rally of the price, which started from the support zone of 1.41210. 

After the resistance level of 1.42156 held, the Singapore dollar gained strength against the US dollar, also closing below the support zone of (1.41210), showing total control of the bears in the market.  

Bullish Scenario:

The strength of the Bulls is weak in all the time frames, from the H4, daily, weekly, and monthly. The bull lost its momentum to the bears from the 01 May 2020 after the bullish accumulation failed to hold.

Bearish Scenario:

We can see the bear bias on all the time frames, and we expect more of the bearish moves to keep pushing down the price in the coming days. 

Conclusion 

The Singapore dollar gain against the US dollar will be good for the foreign exchange of the currency and brokers are already seeing the effect of the stimulus package introduced to recover the lost businesses and economy due to the coronavirus pandemic.

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