Singapore Dollar remains range-bound with upward bias against US Dollar – UOB

With the SGD NEER remaining well above its mid-point and Asian currencies holding firm, USD/SGD eased overnight, according to UOB strategists Quek Ser Leang and Lee Sue Ann. They expect a narrow intraday trading range in the near term. Over 1–3 weeks, their outlook continues to favour modest US dollar weakness towards key support levels, unless resistance gives way.

Dollar decline faces nearby support

"24-HOUR VIEW: We expected USD to “consolidate between 1.2785 and 1.2815” yesterday. We were incorrect as USD declined to a low of 1.2766 before recovering to close 0.21% lower at 1.2777. Despite declining, USD has not gained much momentum, and it is unlikely to weaken much further. Today, USD is more likely to trade in a range between 1.2765 and 1.2795."

"1-3 WEEKS VIEW: We turned slightly negative on USD on Monday (19 Oct, spot at 1.2800), indicating that “there has been a tentative buildup in downward momentum.” We highlighted that USD “may edge lower, but based on the prevailing momentum, any decline is unlikely to break the support at 1.2765.” Yesterday, USD fell to a low of 1.2766. Downward momentum has increased further, and USD could decline to 1.2750. Overall, only a breach of 1.2805 (‘strong resistance’ level previously at 1.2830) would indicate that the buildup in downward momentum has faded."

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