Singapore Dollar: Mild bullish against US Dollar within tight range – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann expect USD/SGD to edge lower intraday toward 1.2760, though a sustained break is seen as unlikely, with major support at 1.2730 intact. On a 1–3 week horizon, UOB keeps a neutral stance, looking for range trading between 1.2730 and 1.2820. Over 1–3 months, the pair is viewed as broadly supported below strong resistance at 1.2880–1.2900.

Dollar-Singapore Dollar holds in defined band

"24-HOUR VIEW : USD rose to a high of 1.2830 two days ago and then dropped sharply to 1.2763. When USD was at 1.2780 yesterday, we indicated that “the sharp drop appears excessive, and USD is unlikely to weaken much further.” We held the view that USD “is more likely to trade in a range between 1.2760 and 1.2800.” USD subsequently traded within a higher range of 1.2769/1.2812. Despite closing largely unchanged at 1.2779 (-0.02%), there has been a slight increase in downward momentum. Today, we expect USD to edge lower and test 1.2760. A continued decline below this level is unlikely. The major support at 1.2730 is not expected to come under threat. Resistance is at 1.2795; a breach of 1.2805 would indicate that the current mild downward pressure has eased."

"1-3 WEEKS VIEW: After holding a positive USD view for more about a week, we revised our view to neutral yesterday (21 May, spot at 1.2780). We highlighted that USD “has likely entered a range-trading phase,” and we expected it to “trade between 1.2730 and 1.2820.” There is no change in our view. "

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