Forex: USD/SGD closes sharply higher ahead of CPI data (Barcelona) - The USD/SGD closed the New York session up 44 pips at 1.2406. Market participants will be focusing on economic data out of Singapore later on in the session which may have influence on future direction. “On the slate in Asia is Singapore’s Mar CPI (1pm local), seen easing to 3.6% y/y from 4.9% y/y in Feb”, noted Sean Callow, FX strategist at Westpac.

From a technical perspective, momentum studies are currently neutral with the RSI (14) consolidating between 40 and 60. Price is now above both the 9 and 20 dma's which is a constructive development. The pair needs to establish higher trade above 1.2422 or below 1.2340 in order to set up the next major move. A close above 1.2420 could open the doors to next resistance at 1.2453 (resistance on daily chart), followed by 1.2527 (also resistance on daily chart). Consequently, a close below 1.2340 could open the doors to 1.2313 (low price on April 17th), followed by 1.2280 (previous resistance, now support on daily chart)