Singapore Dollar: Range trade persists against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang notes USD/SGD is stuck in a tight range after recent sideways trading, with intraday action expected between 1.2900 and 1.2930. On a 1–3 week horizon, the bank still sees downside risks if 1.2860 breaks, while 1.2930 remains strong resistance. On a 1–3 month view, support is highlighted near 1.2805.

Dollar-Singapore Dollar holds tight range

"24-HOUR VIEW: Following last Thursday’s price action, we highlighted on Friday that USD “appears to have entered a range-trading phase between 1.2890 and 1.2920.” USD subsequently traded within a range of 1.2897/1.2921 before closing little changed at 1.2920 (+0.09%). The price action provides no fresh clues. Today, USD could trade in a range between 1.2900 and 1.2930."

"1-3 WEEKS VIEW: Our most recent narrative was from last Thursday (16 Jul, spot at 1.2885), when we indicated that “downward momentum is starting to build, and should USD close below 1.2860, it could trigger a deeper decline.” Since then, USD has traded mostly in a range, and the build-up in momentum is starting to fade. However, we will maintain our view for now as long as 1.2930 (no change in ‘strong resistance’ level) is not breached."

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