May. 7, 2021
After opening at 1.3333, USD/SGD dropped to its lowest point in 2 months at 1.3236. It later recovered 13 pips and is now trading at 1.3249. (Trade USD/SGD with FXTM now).
This downslide might be related to financial indicators data published earlier as United States Initial Jobless Claims came out at 498,000, above the estimate of 540,000. This is also a step forward from the previous data of 590,000.
On the flip side, positive data for USD/SGD released earlier when United States Non Farm Payrolls published today at 12:30 PM came out at 266,000, falling short of the 978,000 projections and continuing its decline from the previous 770,000 figure. The United States Unemployment Rate published today at 12:30 PM came out at 6.1, falling short of the 5.8 projections and continuing its decline from the previous six figure.
As the day reaches an end, a chart visual study suggests the Singapore Dollar fell below the 1.3247 support zone and receded 2 pips away from it. In terms of trend indicators, we can see that at 1.3296, Singapore Dollar made an initial breakout below the 21 day Simple Moving Average, an indication of a negative trend. On the other hand, note that a slight indication of recovery comes from looking at the Bollinger bands: the lower band is at 1.3217 – a low enough level to usually suggest USD/SGD is trading below its value.
Overall, looking at the technical analysis landscape – although indicators are mixed and some are pointing in different directions, it seems further drawbacks may be next for the Singapore Dollar
In the meantime, negative performances are also seen in other symbols, At 1.4649, EUR/CAD is down to its lowest value in 1 year. The Pound/Dollar trading above the 1.4 level for the first time in 2 months.
However, positive performance can be seen looking at other symbols as the S&P 500 climbs to a new all-time high at 4,236. The Euro is up by 102 pips(0.85%), making it its largest single-day gain since December 2020.