According to OCBC strategists Sim Moh Siong and Christopher Wong, the USD/SGD currency pair is consolidating as markets await further clarity on a potential US–Iran deal. The pair experienced a slight decline overnight, attributed to tentative optimism regarding the deal; however, Iran has not yet responded, and a 48-hour deadline is approaching just before the weekend, which is maintaining a degree of caution in the market [1].
The strategists note that daily momentum for USD/SGD is currently flat, with the Relative Strength Index (RSI) having fallen. They anticipate two-way trading with a mild downside bias, and recommend a strategy of selling rallies against nearby resistance levels [1].
Key technical levels identified include support at 1.2660 (76.4% Fibonacci retracement) and 1.2610, while resistance is seen at 1.2720 (61.8% Fibonacci retracement of the 2026 low to high), 1.2770 (50, 100-day moving averages), and 1.28 [1]. The pair was last quoted at 1.2680 [1].
The overall market tone remains cautious, with the possibility of further downside if there is no follow-through on the US–Iran deal optimism today [1].
CONCLUSION
USD/SGD is currently trading in a range with a slight downside bias as markets await developments on a potential US–Iran deal. OCBC strategists recommend selling rallies, citing flat momentum and key technical levels. Market participants remain cautious ahead of the 48-hour deadline for Iran's response.