According to United Overseas Bank’s (UOB) Quek Ser Leang, the Singapore Dollar (SGD) recently saw its downside bias against the US Dollar (USD) fade after the USD/SGD currency pair dipped to 1.2790 and subsequently recovered to close little changed at 1.2827, marking a modest gain of 0.05% [1]. In the near term, UOB expects the USD/SGD pair to trade within a range of 1.2805 to 1.2845, with the downside risk diminishing unless there is a clear break below the significant support level at 1.2790 [1].
On a 1–3 week horizon, UOB maintains that further declines in USD/SGD are contingent upon a sustained move below 1.2790, with 1.2765 identified as the next level to watch should this support be breached [1]. The risk of a deeper decline remains as long as the USD/SGD pair stays below the strong resistance level at 1.2875 [1].
Market participants are closely monitoring these technical levels, as a breach of 1.2845 would indicate that the downside bias has fully dissipated, while a drop below 1.2790 could open the door to further SGD strength against the USD [1]. No specific analyst opinions or forward-looking statements beyond these technical observations were provided in the source article.
CONCLUSION
The Singapore Dollar’s recent downside bias against the US Dollar has faded, with the USD/SGD pair stabilizing above the key support at 1.2790. Market attention remains focused on this level, as a clear break below could signal further SGD gains, while a move above 1.2845 would confirm the end of the downside risk.