In this comprehensive EURSGD analysis, 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 NODX Takes a Thrilling U-Turn
Reuters – In September 2023, Singapore’s exports of goods (excluding oil) fell by 13.2% compared to the same month last year. This drop was less than what people had predicted (14.7%). This fall in exports was the smallest since April, even though it’s the 12th month in a row that exports have decreased. The fall was seen in both electronic and non-electronic goods. Electronic goods like computer chips and parts of PCs saw a decrease of 11.6% compared to last year. Non-electronic goods like gold (not used as currency), medicines, and food also saw a decrease of 13.6%.
Sales to countries like Indonesia, Taiwan, Thailand, and South Korea went down, but they increased to the US and China.
However, when we adjust for seasonal factors (like holiday periods when sales might be expected to go up or down), exports actually went up by 11.1% in September 2023. This is a big jump from the 6.6% drop in August and is better than the predicted increase of 3.2%. So, despite the overall decrease, there are some positive signs too.
In a significant development, the EURSGD pair has successfully broken out of the bearish channel, closing above the crucial 1.45 pivot point on the daily chart. This shift is further confirmed by the RSI indicator, which has flipped above the 50 line, indicating a bullish bias.
Given these factors, it’s anticipated that the EURSGD pair will continue its upward trajectory, potentially gaining value and reaching the R1 support level around the 1.461 area.
The pivot point serves as a strong support for the bullish scenario in the EURSGD market. However, if the bears manage to push the EURSGD pair to close below this level, it could signal a continuation of the decline. The next target for the pair would be the S1 support level, situated around the 1.434 area. Keep an eye on these key levels in the EURSGD market for potential trading opportunities.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.