United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note USD/SGD is trading just above 1.29 after a quiet session, with momentum only tentatively firmer. They expect intraday consolidation between 1.2900 and 1.2930, while the broader 1–3 week view still flags a risk of a break below 1.2860, though odds are low as long as resistance at 1.2930 caps the pair.
USD/SGD stuck in tight band
“24-HOUR VIEW: Following Monday’s price action, we highlighted yesterday that “momentum indicators remain mostly flat,” and we expected USD to “trade in a range between 1.2895 and 1.2925.” Our view was not wrong, as USD traded within a range of 1.2893/1.2925. USD closed little changed at 1.2923 (+0.08%). There has been a tentative increase in upward momentum, but it is insufficient to indicate a continued rise. Today, USD is more likely to trade within a higher range of 1.2900/1.2930.”
“1-3 WEEKS VIEW: Last Thursday (16 Jul, spot at 1.2885), we indicated that “downward momentum is starting to build, and should USD close below 1.2860, it could trigger a deeper decline.” Yesterday (21 Jul, spot at 1.2910), we highlighted the following: “USD traded in a quiet manner over the past few days, and downward momentum is starting to ease. However, as long as 1.2930 (‘strong resistance’ level) is not breached, the risk of USD breaking and closing below 1.2860 remains, though the odds are not high.” We continue to hold the same view.”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)
