USD/SGD faces further upside above 1.3715 – UOB

Quek Ser Leang at UOB Group’s Global Economics & Markets Research reviews the prospects for USD/SGD in the near term.

Key Quotes

“…we highlighted that ‘risk for 3Q is clearly on the upside’. We added, ‘what is less clear is whether the anticipated advance in USD/SGD has enough momentum to rise above the March’s high near 1.3530’.

“USD/SGD not only cracked 1.3530 but it also closed above this level last week before surging to a high of 1.3693 yesterday (20 Jul). Strong momentum suggests USD/SGD is likely to strengthen further. In view of the impulsive price actions, a break of 1.3715 would not be surprising. A break of 1.3715 would shift the focus to 1.3795, the high in October last year.”

“While a move to the major long-term resistance at 1.3900 (top of the weekly Ichimoku cloud) is not ruled out, this level could be out of reach within these couple of months. On the downside, the ‘break-out’ level at 1.3530 is acting as a solid support but only an unlikely breach of 1.3470 would indicate that the risk for a higher USD/SGD has dissipated.”