Singapore Dollar: Weakens against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann keep a constructive view on USD/SGD after the pair briefly touched 1.2991 before closing near 1.2980. They expect any intraday pullback to stay within a tight 1.2955–1.2990 band, while on a 1–3 week horizon the next upside objective remains 1.3000, provided 1.2925 holds as strong support.

Uptrend eyes 1.3000 test

"24-HOUR VIEW: After USD rose more than we expected on Tuesday, we highlighted the following yesterday: “Conditions are overbought, and upward momentum remains lacklustre. That said, as long as USD holds above 1.2940, there is a chance for it to test 1.2980. This time around, the next resistance at 1.3000 is unlikely to come into view.” Although USD rose more than expected to 1.2991, it eased from the high and closed little changed at 1.2980 (+0.08%). USD appears to be unwinding from overbought conditions, and any decline is likely to be contained within a 1.2955/1.2990 range."

"1-3 WEEKS VIEW: USD rose and exceeded our previous technical target of 1.2960 two days ago. Yesterday (24 Jun, spot at 1.2965), we highlighted that “the overall price action continues to suggest further USD strength.” We added, “the next technical target is 1.3000.” USD subsequently rose to a high of 1.2991 before easing. While upward momentum has slowed somewhat, as long as USD holds above 1.2925 (‘strong support’ level was at 1.2915 yesterday), USD could still test 1.3000."

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