Singapore Dollar: Upside risk capped by 1.2790 against US Dollar – UOB
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note USD/SGD has firmed modestly, with the pair closing at 1.2835 after testing both 1.2800 and 1.2840. Short-term momentum now favors a mild upside, though strong resistance at 1.2850 is expected to cap gains.
UOB analysts Quek Ser Leang and Lee Sue Ann note that the USD/SGD pair has shown modest gains, closing at 1.2835 after touching both 1.2800 and 1.2840. While short-term momentum favors a mild upside, strong resistance at 1.2850 is expected to limit gains. For a one to three week outlook, downside risk remains, but a clear break below 1.2790 would be required to signify further weakness.
Following Wednesday's price action, the underlying tone has softened, and while the USD could potentially dip, it is unlikely to reach 1.2790 given the lack of downward momentum. The subsequent price movements did not materialize as anticipated, with the USD dipping to 1.2800 before rising to 1.2840 and closing 0.16% higher at 1.2835.
Today, the USD could inch higher, but any advance is improbable due to the current momentum. A decline below 1.2820 would signal that the upward pressure has diminished.
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