UOB’s Quek Ser Leang and Lee Sue Ann expect the USD/SGD pair to fall and test 1.2760 in the near future, although a sustained break below this level is unlikely. They support a 1-3 week trading range between 1.2730 and 1.2820, with major support at 1.2730 seen as intact.

Dollar-Singapore The dollar remains in a swing range

“24-HOUR VIEW: While we expected the USD to decline and test the 1.2760 level last Friday, we concluded that “a further decline below this level is unlikely.” We added: “resistance is located at 1.2795; a break of 1.2805 would indicate that the current mild downward pressure has abated.” However, the USD traded relatively calmly between 1.2776 and 1.2805. USD closed at 1.2804 (+0.20%), but fell at today’s opening. There has been a slight raise in downward momentum and we still expect the USD to fall and test the 1.2760 level. Given current dynamics, a further decline below this level is unlikely. We do not expect the main support at 1.2730 to be at risk. On the other hand, a break above 1.2800 (minor resistance at 1.2790) would indicate that the dollar is likely to move in price swings rather than fall.

“1-3 WEEK REVIEW: Last Thursday (May 21, spot at 1.2780) we highlighted that the USD was “likely to have entered a swing trading phase” and we expected it “to trade between 1.2730 and 1.2820.” We still maintain the same view.”

(This article was created with the assist of an artificial intelligence tool and has been reviewed by an editor.)