Forex Market: USD/SGD daily trading outlook

Friday’s trade saw USD/SGD within the range of 1.3688-1.3738. The pair closed at 1.3722, edging up 0.18% on a daily basis. It has been the 10th gain in the past 23 trading days and also a third consecutive one. The daily high has been the highest level since March 16th, when a high of 1.3855 was registered. In weekly terms, USD/SGD appreciated 1.01% during the past week. It has been the 4th gain in the past 12 weeks and also the steepest one since the week ended on January 10th, when the cross went up 1.74%. USD/SGD has lost 2.64% of its value so far during the current month, following a 1.23% drop in February.

At 8:12 GMT today USD/SGD was edging down 0.22% on the day to trade at 1.3696. The pair touched a daily low at 1.3693 at 7:53 GMT, overshooting the lower range breakout level (S4), and a daily high at 1.3739 during early Asian trade.

On Monday USD/SGD trading may be influenced by the following macroeconomic reports as listed below.

Fundamentals

United States

Personal Income, Personal Spending

Personal spending in the United States probably rose 0.1% in February, according to market expectations, while personal income was probably up for an 11th consecutive month in February, increasing at a monthly rate of 0.1%.

Consumer spending, which accounts for over two thirds of the nations GDP, rose 0.5% in January, due to higher expenditures on durable goods and services. At the same time, personal income increased 0.5% (USD 79.6 billion) during the same month, while disposable personal income (DPI) rose by USD 63.5 billion.

Wages and salaries were up USD 48.1 billion in January, following an increase by USD 18.3 billion in the preceding month, while supplements to wages and salaries rose USD 6.5 billion in January, after going up USD 5.0 billion in December.

Higher-than-expected rates of increase imply good employment conditions and, therefore, are dollar positive. The Bureau of Economic Analysis is to publish the official figures at 12:30 GMT.

Pending Home Sales

The index of pending home sales in the United States probably rose 0.8% in February, according to the median estimate by experts. If so, this would be the sharpest monthly increase since April 2015, when sales went up at a revised down 2.7%. In January pending home sales unexpectedly fell 2.5%, or the most since December 2014.

In annual terms, the index of pending home sales advanced 1.4% in January, which has been a 17th consecutive period of increase. However, Januarys rate of sales growth has been the slowest since September 2014, when sales were up 1.0%.

In case pending home sales increased at a faster pace than anticipated, this would have a moderate bullish effect on the US dollar. The National Association of Realtor’s (NAR) will report on the official index performance at 14:00 GMT.

Daily and Weekly Pivot Levels

By employing the Camarilla calculation method, the daily pivot levels for USD/SGD are presented as follows:

R1 – 1.3727
R2 – 1.3731
R3 (range resistance) – 1.3736
R4 (range breakout) – 1.3750

S1 – 1.3717
S2 – 1.3712
S3 (range support) – 1.3708
S4 (range breakout) – 1.3695

By using the traditional method of calculation, the weekly pivot levels for USD/SGD are presented as follows:

Central Pivot Point – 1.3674
R1 – 1.3786
R2 – 1.3849
R3 – 1.3961

S1 – 1.3611
S2 – 1.3499
S3 – 1.3436