Singapore Dollar: Range-bound trading holds near-term against US Dollar – UOB

FXStreet Insights Team FXStreet

United Overseas Bank’s (UOB) Quek Ser Leang expects USD/SGD to stay confined to tight ranges in the near term, with intraday price action lacking clear momentum. The strategist still flags a medium-term risk of a break below 1.2860, though the probability is low while resistance at 1.2930 caps the upside. A deeper correction would likely find solid support near 1.2805.

Dollar-Singapore Dollar stuck in tight band

"24-HOUR VIEW: USD closed little changed at 1.2920 (+0.09%) last Friday. When it was at 1.2915 in the early Asian session yesterday, we indicated that “the price action provides no fresh clues, and USD could trade in a range between 1.2900 and 1.2930.” USD subsequently traded in a quiet manner between 1.2898 and 1.2923, closing little changed at 1.2913 (-0.05%). Momentum indicators remain mostly flat, and we continue to expect USD to trade in a range, most likely between 1.2895 and 1.2925."

"1-3 WEEKS VIEW: Our most recent narrative was from last Thursday (16 Jul, spot at 1.2885), when we indicated that “downward momentum is starting to build, and should USD close below 1.2860, it could trigger a deeper decline.” USD traded in a quiet manner over the past few days, and downward momentum is starting to ease. However, as long as 1.2930 (no change in ‘strong resistance’ level) is not breached, the risk of USD breaking and closing below 1.2860 remains, though the odds are not high."

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

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