FxNews—In today’s trading session, the EURSGD currency pair showed significant activity by testing the median line of the bearish flag. Concurrently, the Relative Strength Index (RSI) indicator moved out of oversold territory, indicating a shift in momentum. The bulls have demonstrated their presence by forming three consecutive bullish candles near the S1 support level.
EURSGD Technical Analysis and Forecast
While the prevailing trend for the EURSGD pair remains bearish, recent signals suggest that the bulls might be gearing up to increase prices. The target for this potential rise is around the pivot point, near the 1.45 mark. Reaching this level could create new opportunities for traders to consider short positions on the currency pair.
However, analysts at FxNews advise caution before entering sell orders at the current price, as the pair appears to be oversold. For those considering a short position, limiting the risk to no more than 1% of the account balance is recommended. This risk management strategy enables traders to sustain their position even if the market trends in the opposite direction.
Should the market approach the pivot point, traders can execute a second sell order, capitalizing on the strategic position.
Singapore PMI and Electronics Rise
Bloomberg—Singapore’s Manufacturing PMI increased to 50.3 in November 2023, up from 50.2 in October, showing the third month of growth and confirming a strong recovery in factory activity. Key indicators improved, such as production (50.5 vs. 50.3 in October), net exports (50.6 vs. 50.2), employment (50.4 vs. 50.2), and order backlog (50.7 vs. 50.5). Also, new orders (50.3 vs 49.9) and input purchases (50.0 vs 49.8) rose for the first time.
Furthermore, the electronics sector, which accounts for about 40% of Singapore’s industrial output, grew after 15 months of shrinking (50.1 vs 49.9). On the other hand, supply deliveries still shrank, but at a slower pace (49.7 vs 49.4).