By Quek Ser Leang and Lee Sue Ann of United Overseas Bank The USD/SGD note stalled after a six-day rally, with the pair falling to 1.2950 before closing near 1.2970. In the near term, they expect to trade in the range of 1.2950 to 1.2980, while warning that a break below 1.2925 will signal a recent high at 1.2991, which could limit the dollar’s current strength against the Singapore dollar.
USD/SGD growth momentum will weaken
“24-HOUR VIEW: Two days ago, the USD price rose more than we expected to 1.2991 and then fell. Yesterday, when the USD was at 1.2975, we highlighted that the USD “appears to be withdrawing from overbought conditions and any decline is likely to be in the 1.2955/1.2990 range.” The USD then fell to 1.2950 before recovering and closing essentially unchanged at 1.2970 (-0.08%). The recovery lacks momentum and current price movements are likely part of a swing trading phase. Today we expect the dollar to trade between 1.2950 and 1.2980.”
“1-3 WEEK PRESENTATION: We have maintained a positive USD rate since last week. We maintained our view for two days (June 24, spot price: 1.2965), emphasizing that the USD “remains positive and the next technical target is 1.3000.” After six straight days of gains, the USD closed slightly lower yesterday at 1.2970 (-0.08%). Upside momentum has abated somewhat and the USD will need to continue rising soon, otherwise a break through 1.2925 (no change in the “strong support” level) would mean that the high of 1.2991 seen two days ago is the extent of USD’s current strength.
(This article was created with the aid of an artificial intelligence tool and has been reviewed by an editor.)
