USD/SGD declines below the 20-day SMA as the USD weakens

USD/SGD trades below 1.3700 with 0.20 daily losses.
Inflation in Singapore came in slightly lower than expected.
The US Dollar trades soft ahead of high-tier economic figures to be released this week.

Patricio Martín FXStreet

The USD/SGD declined in Monday's session, mainly driven by the Greenback trading weak against its rivals amid dovish bets on the Federal Reserve (Fed) and lower US Treasury yields. The SGD managed to hold its foot despite lower-than-expected inflation data released during the Asian session, and the focus shifts to key economic activity figures from the US to be released during the week. The economic calendar had nothing relevant to offer on Monday.

The Consumer Price Index (CPI) from Singapore from September came in at 4.1% YoY, lower than the 4.2% YoY expected but accelerated from its last figure of 4.2% YoY.

On the US side, it trades softs as market speculations lean towards a less aggressive approach by the Federal Reserve (Fed) following Chair Powell's speech last week. In his address, Powell emphasised the need to consider the elevated bond yields and stressed the importance of cautious actions in the next decisions. In that sense, the CME FedWatch tool indicates minimal probabilities, currently at approximately 30%, for a 25 basis points hike in the December meeting, which has led to a decline in interest in the US dollar.

On the data front, the US will release the S&P Manufacturing PMI from October on Tuesday, followed by the Q3 Gross Domestic Product (GDP) on Thursday and the Core Personal Consumption Expenditures from September on Friday.

USD/SGD Levels to watch

Analysing the daily chart, USD/SGD exhibits signs of bullish exhaustion, contributing to a neutral to bearish technical perspective. The Relative Strength Index (RSI) displays a negative slope in the bullish territory, hinting at a potential shift in momentum, while the Moving Average Convergence (MACD) shows flat green bars. However, the pair is above the 100 and 200-day Simple Moving Average (SMA), highlighting the continued dominance of bulls on the broader scale.

Support levels:1.3660, 1.3650, 1.3630.

Resistance levels: 1.3690 (20-day SMA), 1.3740, 1.3770, 1.3800.

USD/SGD Daily chart

USD/SGD

Overview
Today last price	1.3671
Today Daily Change	-0.0051
Today Daily Change %	-0.37
Today daily open	1.3722

Trends
Daily SMA20	1.3688
Daily SMA50	1.363
Daily SMA100	1.3518
Daily SMA200	1.3431

Levels
Previous Daily High	1.3765
Previous Daily Low	1.3675
Previous Weekly High	1.3765
Previous Weekly Low	1.367
Previous Monthly High	1.3741
Previous Monthly Low	1.347
Daily Fibonacci 38.2%	1.3709
Daily Fibonacci 61.8%	1.3731
Daily Pivot Point S1	1.3676
Daily Pivot Point S2	1.3631
Daily Pivot Point S3	1.3586
Daily Pivot Point R1	1.3766
Daily Pivot Point R2	1.3811
Daily Pivot Point R3	1.3856

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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