United Overseas Bank’s (UOB) analysts Quek Ser Leang and Lee Sue Ann maintain a cautious stance on the USD/SGD currency pair following a notable movement last Friday, when the US Dollar dropped to a low of 1.2682 before closing 0.19% lower at 1.2699 [1]. In the immediate term, UOB expects the USD/SGD to remain confined within a narrow range of 1.2680 to 1.2715, indicating limited volatility in the near future [1].
Looking ahead over the next one to three weeks, UOB continues to hold a negative outlook for the US Dollar against the Singapore Dollar, a view they have maintained since early this month [1]. The analysts highlight that while the downside risk persists, oversold conditions could slow the pace of any further decline. The next key level to monitor is 1.2670, with any rebounds likely to be capped by resistance at 1.2750 [1].
Despite the recent decline, UOB notes there has been no significant increase in downward momentum, suggesting that the pair is more likely to consolidate in the short term rather than continue a sharp decline [1]. The analysts emphasize that their downside bias will remain as long as the 1.2750 resistance level is not breached [1].
CONCLUSION
UOB analysts maintain a cautious, downside-biased outlook for USD/SGD, expecting the pair to trade within a narrow range in the near term. The market is closely watching the 1.2670 support and 1.2750 resistance levels, with oversold conditions potentially moderating further declines.