Singapore Dollar: Consolidates near recent lows against US Dollar – UOB

FXStreet Insights Team FXStreet

United Overseas Bank’s (UOB) Quek Ser Leang notes USD/SGD slipped to 1.2929 before recovering, with intraday price action still seen as range trading. For the day, the pair is expected to stay between 1.2930 and 1.2960. On a 1–3 week horizon, the bank keeps a constructive Dollar view while stressing that a break below 1.2925 would cap recent strength near 1.2991.

Range holds as upside momentum eases

"24-HOUR VIEW: When USD was at 1.2965 last Friday, we indicated that “the current price movements are likely part of a range-trading phase,” and we expected USD to “trade between 1.2950 and 1.2980.” We did not expect USD to dip to a low of 1.2929. USD recovered from the low to close -0.16% lower at 1.2949. Despite the decline, there is no clear increase in downward momentum, and USD is unlikely to weaken much further. Today, USD is more likely to trade between 1.2930 and 1.2960."

"1-3 WEEKS VIEW: Tracking our positive view from the middle of the month, we highlighted the following last Friday (26 Jun, spot at 1.2965): “Upward momentum has eased somewhat, and USD needs to build on its gain soon, or a breach of 1.2925 (‘strong support’ level) would indicate that the 1.2991 high seen two days ago is the extent of the current USD strength.” USD subsequently dipped to a low of 1.2929. While upward momentum continues to ease, we will maintain our view as long as 1.2925 (no change in ‘strong support’ level) continues to hold"

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

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FXStreet Insights Team

FXStreet

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