OCBC currency strategists Sim Moh Siong and Christopher Wong highlight that the USD/SGD pair has weakened as the United States Dollar (USD) momentum weakens based on personal consumer expenditure (PCE) price index fundamentals, with the pair trading around 1.2960. The bullish daily trend continues, but the Relative Strength Index (RSI) is falling from overbought, and investors are monitoring whether this reversal extends or attracts buying on the dip. They indicate potential distortions from quarter-end flows and outline nearby support and resistance levels.
The pair depreciates as USD dynamics weakens
“USD/SGD found some respite overnight as USD momentum weakened on PCE fundamentals. The pair was last trading at 1.2960 levels.”
“The bullish momentum on the daily chart remains unchanged, although the RSI is showing tentative signs of a decline from near overbought conditions. We continue to monitor whether the reversal has lasting effects or whether declines re-emerge.”
“Quarterly/monthly flows have the potential to distort price action. Support at 1.2940, 1.29 (61.8% fibo retracement from December high to 2026 low), 1.2840/50 levels (200 DMA, 50% fibo). Resistance at 1.2980 levels (76.4% fibo), 1.3030.”
(This article was created with the lend a hand of an artificial intelligence tool and has been reviewed by an editor.)
