According to OCBC strategists Sim Moh Siong and Christopher Wong, the USD/SGD currency pair experienced a sharp rebound after Iran reclosed the Strait of Hormuz, reversing the previous Friday's drop to 1.2667 [1]. The pair had traded as low as 1.2667 following news of a conditional reopening of the passageway, but the weekend's setback—specifically, the reclosure—prompted a safe-haven bid that lifted the pair off its lows in early Monday trade [1].
Technical analysis from OCBC indicates that while daily momentum for USD/SGD remains bearish, there are tentative signs of this momentum fading. The Relative Strength Index (RSI) is also turning up from oversold conditions, suggesting a potential shift in sentiment [1]. Key support levels are identified at 1.2700 and 1.2670, while resistance is noted at 1.2750/60 (50-day moving average, 50% Fibonacci retracement), 1.2800 (21- and 100-day moving averages, 38.2% Fibonacci retracement), and 1.2850 (200-day moving average, 23.6% Fibonacci retracement) [1].
The strategists emphasize that market focus remains on whether the involved parties can reach a deal or if there will be further military escalation in the next 24-48 hours, which could significantly impact the currency pair's direction [1]. No specific analyst forecasts or forward-looking statements beyond this focus on geopolitical developments are provided in the source [1].
CONCLUSION
The USD/SGD pair rebounded sharply due to renewed geopolitical tensions following the reclosure of the Strait of Hormuz. Market participants are closely watching for any resolution or escalation in the coming days, with technical indicators suggesting a potential shift in momentum.