Singapore Dollar: Tight Range Against US Dollar With a Bullish Bias – UOB

1.2765 to 1.2785 is the expected intraday range for USD/SGD. United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann forecast consolidation within these bounds after the pair traded in a narrow range on Wednesday. Stronger short-term downward momentum nevertheless leaves room for a decline towards 1.2750 in the coming days, they say, as long as resistance at 1.2805 holds. Over a broader 1–3 month horizon, they continue to see upside risk if 1.2871 is breached.

1.2750 in focus as short-term downside contrasts 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.)