Singapore Dollar: Range holds as upside risk watched against US Dollar – UOB

FXStreet Insights Team FXStreet

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note USD/SGD stayed largely unchanged around 1.2805 on Tuesday, with momentum still flat. They keep a 24‑hour trading band at 1.2785–1.2815 and sees downside risks over the 1–3 week horizon, but stresses a clear break below 1.2765 is needed to open 1.2740, while resistance at 1.2840 caps the topside.

Dollar-Singapore Dollar stuck in tight band

"24-HOUR VIEW: USD traded within a narrow range and closed largely unchanged on Tuesday. Yesterday, we indicated that “momentum remains flat, and we continue to expect USD to trade in a range between 1.2785 and 1.2815.” USD traded in a quiet manner until the early NY session when it briefly fell to 1.2772 and then rebounded to close largely unchanged at 1.2805 (+0.04%). There has been no clear increase in either downward or upward momentum, and we continue to expect USD to trade between 1.2785 and 1.2815."

"1-3 WEEKS VIEW: Since last Monday, we have held the view that the risk for USD is on the downside. In our most recent update from two days ago (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.” Yesterday, USD briefly dropped to 1.2772 before rebounding. There has been no further increase in downward momentum, and we continue to hold the same view. On the upside, a breach of 1.2840 (no change in ‘strong resistance’ level) would indicate that the downside risk has faded."

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

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