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FxWirePro: Singapore dollar strengthens on the back of higher than expected GDP data

  • USD/SGD is currently trading around 1.3631 marks.
     
  • It made intraday high at 1.3643 and low at 1.3621 levels.
     
  • Intraday bias remains bearish till the time pair holds key resistance at 1.3654 mark.
     
  • A daily close above 1.3638 will test key resistances at 1.3676, 1.3788, 1.3822, 1.3949, 1.4046, 1.4095, 1.4128, 1.4219 and 1.4310 levels respectively.
     
  • Alternatively, a consistent close below 1.3638 will drag the parity down towards key supports at 1.3595/1.3545/1.3512/1.3435/1.3347 levels respectively.
     
  • Important to note here that 20D, 30D and 55D EMA heads down and confirms the bearish trend in a daily chart.
     
  • Singapore Q2 GDP +2.2 pct q/q at annualised, seasonally adjusted rate(poll +0.5 pct).
     
  • Singapore Q2 GDP +2.9 pct y/y (poll +2.6 pct).
     
  • Singapore Q2 manufacturing +2.9 pct q/q at annualised,
    seasonally adjusted rate.
     
  • Singapore Q2 services +3.3 pct q/q at annualised, seasonally adjusted rate.
     
  • Singapore will release retail sales data at 0500 GMT.

We prefer to take short position in USD/SGD around 1.3650, stop loss at 1.3709 and target of 1.3545.

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