Singapore Dollar: Range trade bias against US Dollar holds – UOB

UOB’s Quek Ser Leang and Lee Sue Ann expect USD/SGD to edge lower and test 1.2760 in the near term, though a sustained break below that level is unlikely. They maintain a 1–3 week range-trading view between 1.2730 and 1.2820, with major support at 1.2730 seen as intact.

Dollar-Singapore Dollar stays range bound

"24-HOUR VIEW: While we expected USD to edge lower and test 1.2760 last Friday, we stated that “a continued decline below this level is unlikely.” We added, “resistance is at 1.2795; a breach of 1.2805 would indicate that the current mild downward pressure has eased.” However, USD traded in a relatively quiet manner between 1.2776 and 1.2805. USD closed at 1.2804 (+0.20%) but dropped on the open today. There has been a slight increase in downward momentum, and we continue to expect USD to edge lower and test 1.2760. Based on the current momentum, a continued drop below this level remains unlikely. We do not expect the major support at 1.2730 to come under threat. On the upside, a break above 1.2800 (minor resistance is at 1.2790) would indicate that USD is likely to range-trade instead of edging lower."

"1-3 WEEKS VIEW: We highlighted last Thursday (21 May, spot at 1.2780) USD “has likely entered a range-trading phase,” and we expected it to “trade between 1.2730 and 1.2820.” We continue to hold the same view."

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