Technical Analysis USDSGD : 2021-06-22

[IFC Markets]

Recommendation for USD/SGD: Buy​

Buy Stop : Above 1.348
Stop Loss : Below 1.318

RSI : Neutral
MACD : Buy
MA(200) : Neutral
Fractals : Buy
Parabolic SAR : Buy
Bollinger Bands : Neutral

Chart Analysis​

On the daily timeframe, USDSGD: D1 came out of the triangle and downtrend. A number of technical analysis indicators have generated signals for further growth. We are not ruling out a bullish movement if USDSGD rises above its most recent high, the Upper Bollinger Band and the 200-day Moving Average Line: 1.348. This level can be used as an entry point. The initial risk limitation is possible below the Parabolic signal and 2 last lower fractals: 1.318. After opening a pending order, move the stop to the next fractal low following the Bollinger and Parabolic signals. Thus, we change the potential profit/loss ratio in our favor. The most cautious traders, after making a deal, can go to the four-hour chart and set a stop-loss, moving it in the direction of movement. If the price overcomes the stop level (1.318) without activating the order (1.348), it is recommended to delete the order: there are internal changes in the market that were not taken into account.

Fundamental Analysis​

Inflation may rise in Singapore. Will the growth of the USDSGD quotes continue? An upward movement signifies a weakening of the Singapore dollar against the US dollar. Singapore inflation for May will be published on June 23rd. According to forecasts, it may turn out to be the same as in April and amount to 2.1% in annual terms. This is the maximum since May 2014. The current inflation rate is well above the Monetary Authority of Singapore's rate of 0.06%. On June 25, Singapore will release industrial production for May. It is expected to decrease compared to April. Earlier, Singapore's Non-Oil Exports data for May was released, which turned out to be worse than expected. In turn, the Fed's plans to tighten monetary policy are a positive factor for the US dollar.