Singapore Dollar: Mild upside bias against US Dollar remains intact – UOB

FXStreet Insights Team FXStreet

United Overseas Bank’s (UOB) Quek Ser Leang notes USD/SGD remains under mild downward pressure after slipping to 1.2775 before rebounding. Intraday, the pair may retest 1.2775, but support at 1.2765 is expected to hold. Over the next 1–3 weeks, further downside requires a clear break below 1.2765 toward 1.2740, while resistance at 1.2830 caps the topside.

Downside bias but limited follow through

"24-HOUR VIEW: USD traded in a narrow range and closed largely unchanged at 1.2807 last Thursday. On Friday, we indicated that “the price action provides no fresh clues.” We also indicated that USD “could trade between 1.2795 and 1.2820.” However, USD fell to a low of 1.2775 before recovering to close at 1.2789 (-0.10%). The slight increase in downward momentum is insufficient to indicate a continued decline. That said, there is a chance for USD to test 1.2775 again. The next support at 1.2765 is unlikely to come into view. Resistance is at 1.2805; a breach of 1.2815 would indicate that the current mild downward pressure has eased."

"1-3 WEEKS VIEW: In our most recent narrative from last Tuesday (11 Aug, spot at 1.2805), we highlighted that “while the price action continues to suggest downside risk, USD must break clearly below 1.2765 before a move to 1.2740 can be expected.” Since then, USD traded mostly sideways, remaining within a range. Downward momentum has slowed, but as long as 1.2830 (‘strong resistance’ level previously at 1.2840) is not breached, there is still a chance for USD to break clearly below 1.2765."

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

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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