UOB analyst Quek Ser Leang reports that the US Dollar (USD) extended its gains against the Singapore Dollar (SGD), with the USD/SGD pair reaching a high of 1.2725 as the US Dollar strengthened broadly. The SGD Nominal Effective Exchange Rate (NEER) remained around 1.65% above its mid-point, indicating relative resilience in the Singapore Dollar despite the recent USD strength [1].
Short-term momentum for USD/SGD is described as strong but overbought, with intraday gains likely capped near 1.2725 and major resistance identified at 1.2755. UOB expects the pair to remain supported above 1.2665 in the coming weeks, targeting a move toward 1.2755 if the support holds [1].
In the 24-hour view, UOB did not anticipate the sharp rise to 1.2725, having previously expected range-trading. The USD/SGD pair closed 0.32% higher at 1.2706. While upward momentum persists, overbought conditions suggest that any further advance is likely limited to a retest of 1.2725, with support levels at 1.2690 and 1.2680 [1].
For the 1-3 week outlook, UOB turned positive on the USD last Friday when the spot was at 1.2680, emphasizing that a clear break above 1.2705 was needed for a sustained rise. The recent price action, with USD/SGD soaring above 1.2705 and reaching 1.2725, suggests potential for further gains toward 1.2755, provided the pair holds above the strong support at 1.2665 [1].
CONCLUSION
UOB analysts see the USD/SGD pair supported above 1.2665, with potential to reach 1.2755 if current momentum persists. While short-term gains may be limited due to overbought conditions, the overall outlook remains positive for the US Dollar against the Singapore Dollar.