Quek Ser Leang and Lee Sue Ann of United Overseas Bank (UOB) expect USD/SGD to fall towards 1.2760 on the day, although a sustained breakout is unlikely, with major support at 1.2730 intact. On a 1-3 week horizon, UOB maintains a neutral stance, looking for a trading range between 1.2730 and 1.2820. Over the next 1-3 months, the pair will be seen as broad support below robust resistance at 1.2880-1.2900.
Dollar-Singapore The dollar remains within a certain range
“24-HOUR VIEW: Two days ago, the USD rose to a high at 1.2830 and then fell sharply to 1.2763. When the USD was trading at 1.2780 yesterday, we indicated that “the pointed decline appears excessive and the USD is unlikely to weaken further.” We believe the USD is “more likely to trade in the range of 1.2760 to 1.2800.” The USD then traded in a higher range of 1.2769/1.2812. Despite closing largely unchanged at 1.2779 (-0.02%), there was a slight increase in downside momentum. Today we expect USD to drop and test 1.2760. A further decline below this level is unlikely. The major support at 1.2730 is not expected to be in danger. Resistance at 1.2795; a break of the 1.2805 level would indicate that the current mild downward pressure has abated.”
1-3 WEEK OUTLOOK: After maintaining a positive view on USD for about a week, we changed our view to neutral yesterday (May 21, spot price at 1.2780). We emphasized that the USD “likely entered a swing trading phase” and expected it “to fluctuate between 1.2730 and 1.2820.” In our opinion, there is no change. “
(This article was created with the lend a hand of an artificial intelligence tool and has been reviewed by an editor.)
