Singapore Dollar: Range trade persists against US Dollar – UOB
UOB’s Quek Ser Leang and Lee Sue Ann note that USD/SGD stayed firm on Monday, closing around 1.2788 after trading between 1.2759 and 1.2803, supported by a stronger US Dollar and a stable Singapore Dollar (SGD) Nominal Effective Exchange Rate (NEER). Their short-term view sees scope for a retest of 1.2800–1.2805, while the broader 1.2740–1.2810 range and strong support near 1.2750 remain intact.
Upside capped while range holds
"24-HOUR VIEW: USD popped to a high of 1.2803 during the early NY session yesterday before pulling back to close at 1.2787 (+0.16%). Upward momentum has eased somewhat with the pullback, but there is room for USD to retest the 1.2800 level before a more sustained pullback is likely. Based on the current momentum, a clear break above 1.2800 appears unlikely. Note that there is another resistance level at 1.2810. On the downside, a breach of 1.2765 (minor support is at 1.2775) would indicate that USD is more likely to trade in a range rather than retesting 1.2805."
"1-3 WEEKS VIEW: We indicated on 21 May, when spot was at 1.2780, that USD “has likely entered a range-trading phase between 1.2730 and 1.2820.” In our latest narrative from last Thursday (28 May, spot at 1.2775), we stated that “while we continue to expect range-trading, a narrower range of 1.2740/1.2810 is likely enough to contain the price movements.” We were not wrong, as even though USD fluctuated over the past couple of days, it has remained within our expected range. That said, there has been a slight increase in upward momentum, but for a continued rise, USD must first close above 1.2810. The likelihood of USD closing above 1.2810 will remain intact as long as 1.2750 (‘strong support’ level) is not breached."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
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