USD/SGD: Rebound risk after Hormuz setback – OCBC

FXStreet Insights Team FXStreet

OCBC strategists Sim Moh Siong and Christopher Wong note USD/SGD rebounded sharply after Iran reclosed the Strait of Hormuz, reversing Friday’s drop to 1.2667. While daily momentum remains bearish, RSI is turning up from oversold, with key support at 1.2700 and 1.2670 and resistance at 1.2750/60, 1.2800 and 1.2850. Focus stays on whether parties reach a deal or escalate militarily in coming days.

Safe-haven bid lifts pair off lows

"USD/SGD had traded as low as 1.2667 last Fri, on news of conditional open of passageway at strait of Hormuz."

"But the pair rebounded sharply this morning in early trade following the weekend setback – reclosure of the strait."

"Focus remains on whether both parties manage to get a deal or if there are further military escalation in the next 24-48 hours."

"Bearish momentum on daily chart intact but shows tentative signs of fading while RSI shows signs of rising from near oversold conditions."

"Key support at 1.27, 1.2670 (76.4% fibo). Resistance at 1.2750/60 levels (50 DMA, 50% fibo), 1.28 levels (21, 100 DMAs, 38.2% fibo retracement of 2026 low to high), 1.2850 (200 DMA, 23.6% fibo)."

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

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

GBP/USD: Downward-sloping trendline near 1.3470 remains key barrier

The British pound faces selling pressure against its major currency peers, trading 0.1% lower at around 1.3420 against the US Dollar during the European trading session on Tuesday.

Euro clings to the bid bias above 1.1500

EUR/USD has picked up pace, reversing Monday’s decline and advancing past the 1.1500 barrier on Tuesday. In the meantime, hopes for a diplomatic solution to the Middle East crisis keep the US Dollar under modest downside pressure, helping spot in its recovery.

Ethereum holds steady below $1,900 as retail distribution rises

Ethereum (ETH) continued trading flat on Tuesday following modestly increasing exchange net flows and continued distribution across retail wallets. Ethereum on-chain data shows mixed sentiment across several wallet cohorts.

RBI set to keep interest rates unchanged as inflation risks persist

The Reserve Bank of India is set to announce its bi-monthly monetary policy decision on Wednesday at 10:00 AM IST (04:30 GMT), another meeting coming at a time when uncertainty remains high over the duration and economic fallout of the ongoing Middle East conflict.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.