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US new homes sales were strong overnight, arresting some of the concerns around the US economy and probably the first bit of really good news from that region for some time. On the other hand, data out of Singapore has been weak, with industrial production coming in yesterday well below expectations.
I am moving stops to break-even (1.2680) on USD/SGD as we’ve seen the MACD on the daily chart break above the signal line and it is looking like we could see the downtrend give way. The 38.2% of the January to February sell-off comes in at 1.2677, so a break of this level would be significant.
It could also be worth keeping an eye on the RSIs as well and a move above 55 on the nine-day RSI would print a higher high and could also signal upside. All-in-all there are a few signs the pair could squeeze higher and thus I am keen to adjust my risk profile around that.