Singapore Dollar: Range bias holds near 1.2835 against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note USD/SGD was little changed around 1.2800 on Friday and expect consolidation to persist. Intraday, they see the pair confined between 1.2790 and 1.2820, with 1.2775 as strong support. Over the next few weeks, upward momentum is rebuilding but seen too weak for a sustained break above 1.2835.

Consolidation below 1.2835 resistance

"24-HOUR VIEW: Last Friday, we expected USD to “trade in a range between 1.2785 and 1.2820.” USD then traded within a narrower range of 1.2789/1.2815, closing little changed at 1.2800 (-0.08%). There has been no clear shift in the underlying momentum, and we continue to expect USD to trade in a range, most likely between 1.2790 and 1.2820."

"1-3 WEEKS VIEW: We highlighted last Thursday (08 Oct, spot at 1.2795) that “while upward momentum is building again, it is weaker than before, and USD is unlikely to reach 1.2835.” Since then, USD traded mostly in a range, and there is no change in our view. Overall, only a breach of 1.2775 (no change in ‘strong support’ level) would indicate that the upside bias has faded."

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