Singapore Dollar: Range bias with upside risk against US Dollar – UOB

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann expect USD/SGD to remain in a tight intraday band after Monday’s modest rebound, with the pair seen between 1.2785 and 1.2815. Over the coming weeks, the strategists still see downside risk, but stresses that a clear break below 1.2765 is needed to open 1.2740, while 1.2840 caps the topside.

Dollar stays capped versus Singapore

"24-HOUR VIEW: USD recovered some of last Friday’s decline, closing 0.17% higher at 1.2807. There has been no clear increase in upward momentum, and the current price movements are likely part of a range-trading phase. Today, we expect USD to trade between 1.2785 and 1.2815."

"1-3 WEEKS VIEW: Our most recent narrative was from last Monday (03 Aug, spot at 1.2815), when we highlighted that while the recent strong momentum “suggests further downside risk, USD must break and hold below the significant support at 1.2790 before further declines are likely.” We also highlighted that “the next level to watch below 1.2790 is 1.2765.” Last Friday, USD fell to a low of 1.2767 before recovering to close at 1.2785. USD continued to recover yesterday, reaching a high of 1.2809. While the price action continues to suggest downside risk, USD must break clearly below 1.2765 before a move to 1.2740 can be expected. On the upside, a breach of 1.2840 (‘strong resistance’ previously at 1.2850) would indicate that the downside risk has faded."

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