The EUR/SGD chart looks like it has two trends: on the one hand, the upward trend which was formed based on the period of political uncertainty in the EU continues. On the other hand, there are no preconditions for further growth. Thanks to the positive data on Singapore's economy, the SGD consolidated and has remained in the flat range with low volatility since May.
Overall, this week is full of events which impact the rates of the leading currencies. At the moment the market is waiting for economic forecasts from the FOMC and the FED's decision whether to increase interest rates, which of course affects the USD value. As for the EUR and SGD, today the market received information about the volumes of industrial production in the Eurozone and data about the employment change in the European Union. Industrial production increased in April by 1.4% yoy, slightly exceeding forecasts. The indicator of employment change rose to 0.4%, also exceeding forecasts. On Thursday we also expect data on the trade balance in the Eurozone for April.
As for the Singapore dollar, this week we received statistics about retail sales which did not allow the SGD to strengthen against the Euro. Still, the level achieved has been saved because, while the retail sales volume of 2.6% YoY is lower than expected, on a monthly basis it's at the acceptable level of +1.6%. On Friday we also also expect data about exports and the trade balance in Singapore for May. Thus we can expect an increase in the volatility for the EUR/SGD.
The MACD, Stochastics, and RSI oscillators are neutral. The rates continue in a narrow range between 1.5426-1.560 EUR. Most likely we would see the achievement and breach of the support line. You can designate points of entry at the levels of 1.5530 and 1.5450 EUR. The current price is already approaching the level of 1.545, but can turn up, considering the recently-received positive statistics on the EUR. In the medium term, the most optimal course of action are the short deals, considering that the level 1.5455 is the highest in one year. It was previously achieved in May 2016. This is why the rates can go down after reaching the peak.
