Traders are always looking for Forex signals to help them decide when it might be best to enter the market. This article looks at the Singapore dollar against the Indian rupee, and considers some possible key levels.
SGD/INR or the Singapore Dollar in exchange to the Indian Rupee is currently at 49.504, down by 0.06 % or 0.029 pips in today’s Asian trading session.
Technical indicators on the 1-hour time frame are giving buy signals, with Stochastic (9,6) at 61.537 showing enough upward momentum for a rally higher. MACD (12, 26) is at 0.021, also giving a signal to go on a long position.
ADX (14) is at a level of 62.131, also a buy, while Williams %R is giving a value of -36.364. The CCI (14) indicator on the 1-hour SGD/INR time frame is 125.66 while the Ultimate Oscillator is at 60.852.
Medium-term simple moving averages are also giving long signals, with the 10 SMA, 20 SMA and 50 SMA below the price. The exponential moving averages of the same parameters also support a long position.
Moving averages on the longer-term time frames don’t support the long position just yet, with most simple moving averages and exponential moving averages above the current price.
Classic pivot points give the support levels at 49.048, 49.172, and 49.365 with resistance levels at 49.682, 49.806, and 49.999. The Fibonacci calculation yields support levels at 49.172, 49.293, and 49.368 with resistance levels at 49.610, 49.685, and 49.806.
The Camarilla computation of pivot points shows support at 49.471, 49.50, and 49.529 with resistance levels at 49.587, 49.685, and 49.806. The Woodie’s formula for pivot points calculation yields support levels at 49.082, 49.189, and 49.399 with resistance levels at 49.716, 49.823, and 50.033. Lastly, the Demark’s support is at 49.427 and resistance is at 49.744.
On the 1-hour time frame, the pair is clearly stuck inside a tight range below 50.00 and above 49.00. The longer-term daily time frame indicates a sharp downtrend from the high of 54.00 in August. Meanwhile, the weekly chart indicates a correction from the uptrend ever since the pair broke above the 45.00 handle in May 2013.
A deeper pullback from the recent rally could take the pair as low as the 48.00 handle, which has served as an area of interest in the past. A strong break below the 46.00 mark could mean the start of a longer-term reversal and downtrend.
The 52-week range of the pair spans a low of 42.528 and a high of 53.982. The day’s range is from 49.256 to a high of 49.641, with possible long and short Forex signals coming at these highs and lows respectively Average bid prices are currently at 49.461 while average ask prices are at 49.555. The previous close was at 49.538 and open at 49.538.
As for central bank interest rates, the Monetary Authority of Singapore (MAS) offers a benchmark rate of 0.06%. The Reserve Bank of India has a 7.25% interest rate. Traders interested to take advantage of interest rate differential or positive carry stands to gain on a long-term short SGD/INR position, as India’s interest rate is much higher compared to that of Singapore.
Meanwhile, USD/SGD is currently at 1.2484, up by 0.05% in today’s Asian trading session. The pair is currently at a long-term downtrend since the peak of 1.2800 in August this year.
Forex Signals Are Not Always Correct
As with any form of Forex signals, those offered through technical analysis as above are sometimes incorrect. Traders should always take this into consideration when looking to enter the market, and place the appropriate risk parameters into their trade to ensure they do not lose all of their account capital.