The upward trend continues and the euro strengthened versus all currencies, including the SGD. Moreover, the trend is becoming more rapid, given the emerging downturn in the Singaporean economy. The rates continue to test the resistance line and to push it up, achieving the price level of August 2014. During this week the situation has not changed. Despite all the political risks for the eurozone, the euro is rising in price based on sure economic growth - the most rapid one for the last decade. The latest eurozone GDP data indicates a GDP growth in Q4 by 0.6% and 2.7% in annual terms, matching forecasts. The head of the ECB a week earlier confirmed the positive trend in the EU economy, calling economic growth confident and wide-ranging. In Singapore, we can see the opposite situation: the volume of industrial production in December dropped by 3.9%, while am increase of 0.5% was expected. The decrease of production overall was observed for the first time in 17 months and was unexpected on the market. In addition, inflation in December rose only by 0.4%, which is below the expected 0.55%.
At the moment the technical oscillators (RSI, MACD, Stochastic) unanimously point to the overbought zone, so the probability of a price correction remains very high. The news background for the currency pair will be less intense next week. In this situation, in the short term the best would be the deals to SELL. At the same time, it should be considered that in the medium term, the upward trend will continue.
