United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note that the USD/SGD pair has stabilized after an earlier sell-off, with spot trading around 1.2905, and intraday price action will remain contained between nearby support and resistance. They highlight the build-up of the downtrend over a 1-3 week horizon, with 1.2860 being the key trigger for deeper declines, while 1.2930 closes the upper limit.

The dollar-Singapore pair is stuck in a tight range

“24-HOUR VIEW: Two days ago, the USD fell to a low at 1.2876. While it was at 1.2885 at the start of the Asian session yesterday, we highlighted that “the pointed boost in momentum points to further declines, but any decline is expected to be met with mighty support at 1.2860.” We also noted that “the 1.2875 level is also expected to provide support.” Our forecast failed as the USD rebounded to 1.2912 before closing 0.18% higher at 1.2908 (+0.18%). USD appears to have entered a swing trading phase, most likely between 1.2890 and 1.2920.”

“1-3 WEEK VIEW: Two days ago (July 15, spot at 1.2910) we emphasized that “while the USD may weaken given the lack of a clear increase in downside momentum, any decline could be limited in the 1.2860/1.2955 range.” After the USD fell to a low at 1.2876, yesterday (July 16, spot at 1.2885) we highlighted the following: “Downside momentum is starting to develop and if the USD closes below 1.2860, it could trigger a deeper decline. On the other hand, a break of 1.2930 (“strong resistance”) would mean that the risk of further declines has diminished. Our view remains unchanged.”

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