UOB strategists Quek Ser Leang and Lee Sue Ann observed that the USD/SGD currency pair rebounded to 1.2810 before closing at 1.2797, marking a 0.10% increase. Despite this upward movement, the strategists noted that the momentum is not strong enough to signal a sustained advance in the US dollar against the Singapore dollar. They indicated that while there is a possibility for USD/SGD to edge above 1.2810, the major resistance level at 1.2835 is unlikely to be reached in the near term [1].
In their 24-hour view, UOB highlighted that the US dollar had eased to a low of 1.2769 two days prior, and when it was at 1.2780, they expected any decline to remain within the 1.2765/1.2795 range. However, the currency pair rebounded from 1.2775 to 1.2810, closing higher at 1.2797. The strategists reiterated that the increase in upward momentum is insufficient for a sustained rise, but there is a chance for the pair to move above 1.2810. Support levels are identified at 1.2785 and 1.2775 [1].
Looking at the 1-3 week outlook, UOB previously noted that momentum was building and the USD was likely to rise toward 1.2835. After a retreat to 1.2769, they revised their view, suggesting that USD/SGD has entered a range-trading phase between 1.2740 and 1.2810. The strategists did not expect the pair to test the top of this range so soon, as it reached 1.2810 during the NY session. They now believe that while upward momentum is rebuilding, it is weaker than before, and the USD is unlikely to reach 1.2835. A breach of the 1.2765 support level would indicate a period of renewed range-trading [1].
CONCLUSION
UOB strategists see limited upside for USD/SGD, with momentum insufficient for a sustained advance and resistance at 1.2835 unlikely to be breached. The pair is expected to remain in a range-trading phase, with support at 1.2765. Market impact is low, as no significant breakout is anticipated.