USD/SGD faces a major support at 1.3160 – UOB

Quek Ser Leang at UOB Group’s Global Economics & Markets Research, gives his views on USD/SGD.

Key Quotes

“In the FX Technical section of our Quarterly Global Outlook published one month ago on 19 Mar 2021 (when USD/SGD was trading at 1.3410), we noted the breach of the declining trend-line resistance, and we held the view that USD/SGD ‘is likely to strengthen further’ in the second quarter of the year. We highlighted that ‘a break of the 55-week exponential moving average at 1.3560 would not be surprising’. USD/SGD subsequently traded sideways but did not break the moving average. Yesterday (19 Apr), USD breached the strong support at 1.3330 and dropped quickly to 1.3300 before extending its decline today (low of 1.3262 at the time of writing).”

“With the 55-week exponential moving average still intact, coupled with the ease by which USD/SGD took out 1.3330 and 1.3300 indicates that our view from last month for USD/SGD to “strengthen further” in the second quarter is incorrect. On the daily chart, the risk has shifted to downside but at this stage, it is premature to expect USD/SGD to break the major support near 1.3160 (low of 1.3157 in Jan and 1.3164 in Feb). Ahead of 1.3160, there is another strong shorter-term support at 1.3200.”

“On the weekly chart, while MACD is weakening, it is still positive. The 55-week exponential moving average currently sits very close to the March’s peak near 1.3530. Within these few months, this level is critical as only a breach of this resistance would indicate that the downside risk has dissipated. On a shorter-term note, the top of the daily Ichimoku cloud near 1.3360 is already quite a formidable resistance level.”

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD: Focus on two-month-old support near 1.1750

EUR/USD remains pressured around three-week lows, consolidate the biggest daily fall in a month. Firmer Momentum back-up to the south-run, 50-DMA break favor sellers.


GBP/USD: Bulls and bears will battle this out near the 61.8% golden ratio

The GBP/USD price has corrected 50% of the hourly bearish impulse. The bulls have been chipping away as profits are taken with bears moving aside one by one. This has resulted in a slow decelerating correction from which could attract sellers again. 


EUR/USD: Focus on two-month-old support near 1.1750

EUR/USD remains pressured around three-week lows, consolidate the biggest daily fall in a month. Firmer Momentum back-up to the south-run, 50-DMA break favor sellers.


Ethereum Classic Price Prediction: ETC coils up for 40% upswing

Ethereum Classic price shows choppy action as it approaches the lower trendline of an ascending parallel channel. The $52.92 support floor is likely to be tagged before a 40% upswing originates.

Read more

US Michigan Consumer Sentiment Preview: Markets will have to look hard for positive signs

Consumer outlook expected to rebound to 72.2 in September. August’s 70.2 was the lowest since December 2011. Inflation and Delta variant wearing on US optimism. Markets face negative dollar risk from fading consumer optimism.

Read more