USDSGD Outlook – Binary Options
The Singapore brokers are bearish on the pair looking at the monthly chart. The Singapore dollar has enjoyed more gains over the US dollar all through the year of the pandemic. However, the emerging economy will have to prepare for the interest hike that the Federal Reserve will be implemented because it may happen sooner than expected and may cause some turbulence in the financial market.
The Singapore authority has mandated that the COVID-19 vaccination will begin from February 2022. There will be some exceptions for those with permanent residence, students with long-term visiting passes, and those who are below age 12, also for those who are medically ineligible for vaccination.
The MMTF (Multi-ministry Task Force) is taking the steps as a new measure in dealing with the Omicron variant and it will help in sustaining the high vaccination rates the country has already achieved. Likewise, it will facilitate the safe reopening of society and economic activities.
Producer Price Index m/m
The report focuses on finished goods and the wholesale prices of the goods. The office of the bureau of labor measures the changes of prices on producer goods and services sold to consumers.
The news is released 13 days into the new month, and it’s a good indicator for consumer inflation because if the cost of production is high it is usually passed to the final consumers. The Forecast is 0.4% while previous data was 0.8%
Monthly Outlook: Down Swing Slowing within Significant Support Area
Monthly Resistance 1.46688, 1.38094.
Monthly Supports 1.31571, 1.31890,
The USDSGD pair is bearish on the monthly chart and the Singapore brokers gained against the US dollar from the high of 02 March 2020 down to the support level of 01 December 2020 when the COVID-19 cases caused havoc to the world economy.
The USDSGD pair did not trend during most of 2021 because it was in the correction phase of the market.
However, the pair created a double bottom pattern as of 01 January 2021 and 01 June 2021 which will likely take the price up. A breakout above the resistance of 1.38094 will take the price higher to the 1.46688 resistance.
Weekly Resistance Levels: 1.37490, 1.45000.
Weekly Support Levels: 1.34190, 1.31468.
The USDSGD pair could be recovering from the COVID-19 pandemic as we can see the weekly market structure creating higher lows and higher highs. If the trend can take the price above the recent resistance level of 1.37490 and close above the zones, we may see the bullish trend continue for weeks.
The support zone of 1.34190 was held for some weeks as of 01 November 2021, the zone is under pressure by the bears. If the level is breached, the price will drop to the 1.31468 level where a lot will be at stake for the Singapore brokers and other retail traders.
Daily Outlook: Bearish
Daily Resistance Levels: 1.36070, 1.37434.
Daily Support Levels: 1.34750.
On the daily chart, we can see that the USDSGD pair is bearish and the trend continued after the previous support level of 1.36070 was retested and acted as resistance to price by pushing it down. The Bears dominated the zones of 1.36070 and close the 07 January candle by engulfing the previous day candle of 6th January 2022.
As of the writing of this report, the support level of 1.34750 is on the verge of collapse because the Singapore brokers who are sellers are pushing the price down. If the bears can close below the zone, the price will look for another support. The Bulls will have to wait for an opportunity to reverse the trend into a bullish run if the support is not breached.
If the Bulls are not in the market since the trading week began. The Bulls lost the market to the bears engulfing their performance as of 07 January 2022. The Singapore brokers who wish to go long will watch the support zone of 1.34750 if they can reject the bear’s advancement.
The scenario has favored the bears since the beginning of the trading week. If the price of the USDSGD pair can breakout below the current support level of 1.34750, we shall see the downtrend continues.
The World bank analyst states that the World economy will be slowed because of the COVID-19 variants that may affect the recovery process of the world’s economy. Also, from the IMF’s point of view, the US rate hikes may rattle the financial market and the emerging economy must put that into consideration because it may happen faster than expected.
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