United Overseas Bank (UOB) analysts Quek Ser Leang and Lee Sue Ann expect the USD/SGD currency pair to edge lower intraday toward 1.2760, but they do not anticipate a sustained break below this level, with major support identified at 1.2730 [1]. Over the next 1–3 weeks, UOB maintains a neutral stance, projecting that USD/SGD will trade within a range of 1.2730 to 1.2820 [1]. For the 1–3 month horizon, the pair is seen as broadly supported below strong resistance at 1.2880–1.2900 [1].
In recent trading, the US dollar rose to a high of 1.2830 two days ago before dropping sharply to 1.2763. The analysts noted that the sharp drop appeared excessive and predicted that the USD was unlikely to weaken much further, expecting it to trade in a range between 1.2760 and 1.2800 [1]. The USD subsequently traded within a higher range of 1.2769 to 1.2812, closing largely unchanged at 1.2779, a marginal decline of 0.02% [1].
Despite the largely unchanged close, there has been a slight increase in downward momentum, with expectations that the USD may test 1.2760 in the near term. However, a continued decline below this level is considered unlikely, and the major support at 1.2730 is not expected to be threatened [1]. Resistance is noted at 1.2795, and a breach of 1.2805 would indicate that the current mild downward pressure has eased [1].
UOB's analysts revised their stance from positive to neutral as of 21 May, with the view that USD/SGD has likely entered a range-trading phase and will remain between 1.2730 and 1.2820 for the foreseeable future [1].
CONCLUSION
UOB analysts expect the Singapore dollar to remain mildly bullish against the US dollar, with USD/SGD likely to trade within a defined range and no major breakout anticipated. Market sentiment is neutral, and the impact on broader markets is expected to be limited in the near term.