Singapore Dollar: Is range-bound trading against the US Dollar likely? – UOB

Range-bound trading near 1.2785 remains the outlook for USD/SGD, according to United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann. With downward momentum having stalled, they expect the pair to stay between key levels over the next 24 hours. Their projected range for the next 1–3 weeks remains 1.2775 to 1.2835, although a close below 1.2775 would open the way for a decline towards 1.2755. For a clearer trend to emerge, a sustained break of either 1.2855 or 1.2755 is needed.

Can Dollar-Singapore Dollar Break Out of Sideways Trading?

"24-HOUR VIEW: When USD was at 1.2795 in the early Asian session last Friday, we indicated that USD “is likely to edge lower.” However, we stated that “given the mild downward pressure, any decline is unlikely to break below the major support at 1.2775.” USD declined more than expected to 1.2771 before settling 0.15% lower at 1.2781. There has been no further increase in downward momentum, and instead of declining further today, USD is more likely to trade in a range between 1.2775 and 1.2800."

"1-3 WEEKS VIEW: Our most recent narrative was from last Tuesday (27 Oct, spot at 1.2810), when we highlighted that USD “is likely to trade between 1.2775 and 1.2835.” On Friday, USD broke below 1.2775 with a low of 1.2771 before recovering. Despite breaching the support level, there has been no clear increase in downward momentum. For the time being, we continue to hold the view that USD is likely to trade in a range between 1.2775 and 1.2835. Looking ahead, should USD close below 1.2775, it would then likely decline toward the next support level at 1.2755."

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