Singapore Dollar: Downside risk against US Dollar stays in focus – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann keep a mildly positive stance on USD/SGD, looking for a test of 1.2900 in the near term while seeing 1.2915 as a tougher hurdle. On a 1–3 week horizon, they maintain that gains remain intact as long as 1.2830 holds. Over 1–3 months, a break above 1.2930 would open scope toward 1.3000.

Mild upside bias with key resistance

"24-HOUR VIEW : Two days ago, USD dipped to a low of 1.2848 and then recovered. When USD was at 1.2870 yesterday, we noted that “despite the decline, there has been no clear increase in downward momentum,” and we held the view that USD “is likely to trade between 1.2850 and 1.2890.” USD then traded within a narrower range than expected (1.2856/1.2885). Despite the relatively quiet price action, upward momentum has increased somewhat. Today, USD could edge higher and test 1.2900. Given the lacklustre momentum, Monday’s high, near 1.2915, is unlikely to come into view. Support is at 1.2870, followed by 1.2855."

"1-3 WEEKS VIEW: We have held a positive USD view since the start of the month (as annotated in the chart below). Yesterday (10 Jun, spot at 1.2870), we highlighted that “there has been a tentative slowdown in momentum.” We also highlighted that USD “must surpass 1.2930 before a move to 1.2960 can be expected.” Our view remains unchanged. Overall, only a breach of 1.2830 (no change in ‘strong support’ level) would indicate that USD is not advancing further."

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