Singapore Dollar: Narrow Range Against US Dollar With an Upside Bias – UOB

USD/SGD faces stronger short-term downward momentum, although upside risk remains in the broader 1–3 month outlook, according to United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann. Following Wednesday’s narrow trading range, they expect intraday consolidation between 1.2765 and 1.2785. A move towards 1.2750 could follow over the coming days, provided the pair remains below resistance at 1.2805. Over 1–3 months, they continue to see upside risk if 1.2871 breaks.

Can short-term downside coexist with lingering upside risk?

"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.)