Fxnews – In today’s comprehensive EURSGD forecast, we will first scrutinize the current economic conditions in Singapore. Following that, we will meticulously delve into the details of the technical analysis pertaining to the EURSGD pair.
Singapore’s Retail Sales Growth Slows Down
In September 2023, Singapore experienced a deceleration in its retail sales growth, registering a modest 0.6% increase compared to the same month last year. This represents the weakest growth since January, signaling a downturn from the previous month’s revised 4.2% rise. The slowdown was evident across various sectors, with notable dips in sales of supermarkets & hypermarkets, cosmetics, toiletries & medical goods, apparel & footwear, and optical goods & books. There was a marked contraction in department stores, petrol service stations, and furniture & household equipment sectors. Conversely, certain areas such as food & alcohol, watches & jewelry, and mini-marts & convenience stores witnessed an upturn in sales. Despite these mixed signals, the month-on-month data indicates a 1.6% decline in retail sales, suggesting a cautious consumer atmosphere. The mixed performance across different retail sectors suggests that while the economy is not sharply contracting, it is certainly showing signs of reduced retail activity, pointing towards a potential slowdown in economic expansion.
Regarding whether the Singapore economy is expanding or shrinking based on retail sales data, it appears that the economy is facing some challenges that may signal a slowing expansion, particularly within the retail sector. While a single indicator such as retail sales is not definitive proof of the overall economic trend, it is an important measure of consumer confidence and spending, which are key drivers of economic growth.
EURSGD Forecast: A Detailed Analysis
The EURSGD currency pair is currently trading below the significant 1.46 support level. Despite the bulls’ attempt to break out of this level on the 23rd of October, their efforts were unsuccessful. This situation is clearly depicted in our EURSGD forecast. The presence of a long-wick candlestick on the daily chart indicates that bearish sentiment is prevailing. As the EURSGD pair is trading below the Ichimoku cloud, it is advisable to seek selling opportunities.
To gain a more detailed insight into the EURSGD forecast, we can examine the 4H chart. Here, the pair is trading within a bullish channel. With the RSI indicator hovering above the 50 level and the pair trading above the 1.45 pivot, it is plausible that the price could aim for the upper line of the bullish channel.
Therefore, it is recommended to wait for the EURSGD bears to form a bearish engulfing pattern or a long-wick candlestick pattern near the resistance, or to break down the channel and close below S1. A close below S1 would pave the way to S2, followed by S3, as per our EURSGD forecast.
FxNews analysts suggest keeping a close eye on these levels.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.