USDSGD Technical Analysis for Singapore
Contents
Introduction
In the face of a global pandemic, the Sing-dollar proceeds to observe more gains versus the Greenback for nine consecutive months, as revealed on top Singapore online brokers.
As the New Democrat government push for further stimulus, we notice a slowing in the Singapore dollar’s strength.
Do we see a short-term break in the SGD strength, or should we expect a radical price change to favor the USD? Find out more as you read on.
Singapore Fundamentals
Asian stocks moved up on Wednesday following bullish Wall Street earnings and a positive outlook on global economic recovery.
Singapore’s FX reserves, a measure of all foreign assets such as gold government/corporate bonds, treasury bill, equity, or a specific currency under the control of the nation’s central bank, has been in an uptrend since July 08, 2019.
The data released on Monday came out higher at 370.1B compared to the previous at 362.3B, indicating a positive outlook for the SGD.
US Fundamentals
The USD slumped to its one-week low as revealed on the DXY – USD index, seeing the Euro increase by 0.48% against the Greenback trading at 1.2106 USD.
Investors prepare for possibilities of speedy US growth, new supply, and inflation as benchmark yields set new highs.
Compared to a 1.16% growth on Monday, the benchmark 10-year notes increased by 1.1568%.
Investors generally maintain a long term bearish sentiment on the long-awaited COVID-19 stimulus package by President Joe Biden.
Spot gold recorded a 0.3% gain, trading at 1835.42/ounce, and the Brent BRN1! oil prices increased by 0.8%, trading at 61.06/barrel. Meanwhile, the US West Texas Intermediate crude WTI CL1! also added 0.6%.
Also, the share price of LYFT Lyft Inc saw an 11% boost, followed by a 2% boost in Twitter shares following their recent quarterly results.
Investors speculate on how easy money, government stimulus, and vaccinations will boost oil, the stock market, and inflation, as earnings followed a slowing of the global market rally.
USDSGD Technical Analysis
Long term Price Analysis
Monthly Outlook: Bearish Slowing
The bearish divergence and breach of the 1.41078 levels forced the USDSGD foreign exchange into a downward spiral.
A hidden bearish divergence on the weekly time frame should send the price deeper into the support area.
Weekly
Weekly Resistance Levels: 1.33892, 1.35270
Weekly Support Levels: 1.31578, 1.32134
The selling influence on the USDSGD increases, as unveiled on the weekly chart overhead. All effort to reestablish intensity in the Greenback is repealed as USDSGD trade around the MA-10, helping as resistance-zone.
The down-hill inclination becomes more aggressive with the RSI selling under the RSI – level-70.
The recommended incentive package by President Joe Biden carries adverse views to the Us dollar as investors drop faith in the Greenback.
Daily Outlook: Bearish
Daily Resistance Levels: 1.37130, 1.35116, 1.34041, 1.33360
Daily Support Levels: 1.32070, 1.32349, 1.31578
The struggle to move the USDSGD exchange rate higher was thwarted by a massive sell-off at the intraday level.
As we advance, we anticipate a further price drop at the intraday level. However, we do not ignore the possibilities of a surprise upswing, still at the intraday market view.
Bullish Scenario:
Now that the USDSGD trades in the January and March 2018 support zone, a validation to take a long position would be a monthly candlestick close above the 1.33896 resistance and an exit of the monthly oversold area.
Perhaps a combination with a daily time frame bullish chart structure should reinforce the upbeat campaign.
Bearish Scenario:
Bearish momentum is slowing on the monthly time frame as the exchange rate finds support within the 1.32854 and 1.30088 area.
We may still see the USDSGD price inch lower from bearish activities on the intraday level.
Conclusion
At the current point in the market, where bearish momentum starts to lose steam, we’ll be reducing our trade holding time, as we may start to see sharp down and upswings in days to come.
I've been a professional trader for over 5 years.
Currently I work as forex analyst for different investment companies.
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