USD/SGD: Bearish momentum builds into MAS decision – OCBC

OCBC strategists Christopher Wong and Sim Moh Siong highlight that USD/SGD has softened as markets weigh de-escalation hopes, with technical signals pointing to fading bullish momentum and a potential bearish phase. They flags key support and resistance levels around 1.2810–1.2780 and 1.29–1.2940. Ahead of the upcoming Monetary Authority of Singapore (MAS) meeting, OCBC sees all policy options open but leans toward a steeper S$NEER slope.

Key supports eyed before MAS meeting

"USD/SGD traded softer overnight as markets weigh de-escalation hopes. Pair was last seen at 1.2845. Bullish momentum on daily chart continues to show signs of fading while RSI eased."

"Price pattern shows a bearish engulfing candlestick, which may point to near term bearish pressure. Support at 1.2810/20 levels (21, 100 DMAs), 1.2780 levels (38.2% fibo retracement of Nov high to 2026 low)."

"Break below puts next support at 1.2780 (38.2% fibo), 1.2740 (50 DMA). Resistance at 1.29 (61.8% fibo), 1.2940."

"All policy options are on the table, though we lean more towards a steepening of the S$NEER policy band slope."

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