Singapore Dollar retains bullish bias against US Dollar within narrow range – UOB

An intraday consolidation range of 1.2765 to 1.2785 is expected for USD/SGD after Wednesday’s narrow trading range, according to United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann. With short-term downward momentum gathering strength, they see scope for the pair to reach 1.2750 in the coming days, as long as resistance at 1.2805 holds. Over their broader 1–3 month horizon, a break above 1.2871 would still pose an upside risk.

Short-term downside builds as upside risk persists

"24-HOUR VIEW: Two days ago, USD fell to a low of 1.2766. When it was at 1.2780 yesterday, we highlighted that “despite declining, USD has not gained much momentum, and it is unlikely to weaken much further.” We added that USD “is more likely to trade in a range between 1.2765 and 1.2795.” However, USD traded within a tight 1.2771/1.2783 range. The price action provides no fresh clues. Today, USD could trade between 1.2765 and 1.2785."

"1-3 WEEKS VIEW: On Monday (19 Oct, spot at 1.2800), we indicated that USD “may edge lower, but based on the prevailing momentum, any decline is unlikely to break the support at 1.2765.” After USD fell to a low of 1.2766, we highlighted yesterday (21 Oct, spot at 1.2780) that “downward momentum has increased further, and USD could decline to 1.2750.” We will continue to hold the same view as long as USD holds below 1.2805 (no change in ‘strong resistance’ level)."

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