USD/SGD: Consolidation likely in the near term – OCBC

USD/SGD continued to trade near recent highs; last seen at 1.3464, OCBC’s FX analysts Frances Cheung and Christopher Wong note.

USD is waiting for a catalyst to move

“Mild bearish momentum on daily chart intact for now while RSI is flat. Consolidation likely in the near term. Resistance at 1.3490, 1.3520 levels. Support at 1.3390 (21 DMA), 1.3340 (200 DMA).”

“US payrolls data on Fri may provide the directional catalyst for USD while we continue to watch CNY fixing. S$NEER was last at 0.93% above model-implied mid. This still shows that SGD remains firmer vs. peers in the trade basket but it is less firm today (vs. than for most of the year).”