UOB’s Quek Ser Leang notes that the pointed decline in USD/SGD towards 1.2900 seems overdone, but the pair may continue to test support near 1.2890 in the miniature term before stabilizing. During the day, resistance is located around 1.2935/1.2950, while over the next one to three weeks, the bank expects the USD/SGD rate to remain in a slightly higher range of 1.2890-1.2990.
Short-term downside, broader scope
“24-HOUR VIEW: We did not expect the sharp drop in the USD yesterday, which brought it to a low at 1.2901 (we expected a swing trade). While the sharp decline seems exaggerated, the decline has not fully stabilized. Today, the USD could fall below the 1.2900 level and potentially test the major support at 1.2890. A clear break below 1.2890 is unlikely. Resistance is located at 1.2935; breaking 1.2950 would suggest stabilization of the decline.”
“1-3 WEEK REVIEW: On Tuesday (June 30, spot price: 1.2930), we indicated that the US dollar “is now neutral” and expected the dollar to “be in the range of 1.2870 to 1.2970.” Following the dollar’s rise to 1.2975 and its rebound, we highlighted the following yesterday (July 2, spot at 1.2960): “The slight raise in momentum is not sufficient to indicate sustained growth. We continue to expect swing trading, however, we are revising our expected range upwards to 1.2890/1.2990. We continue to maintain the same view.”
(This article was created with the facilitate of an artificial intelligence tool and has been reviewed by an editor.)
