Singapore Dollar: Range holds as upside risk watched against US Dollar – UOB
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note USD/SGD stayed largely unchanged around 1.2805 on Tuesday, with momentum still flat.
On Tuesday, the Singapore dollar remained largely unchanged against the US dollar, hovering around 1.2805. United Overseas Bank analysts Quek Ser Leang and Lee Sue Ann reported a 24-hour trading band of 1.2785–1.2815, with downside risks noted for the next 1-3 weeks. However, they emphasized that a clear break below 1.2765 would be required to initiate a move towards 1.2740, while a resistance level of 1.2840 caps upward movement.
Throughout the day, USD traded in a narrow range, ultimately closing unchanged at 1.2805, up 0.04% from the previous session. There was no discernible shift in either upward or downward momentum, indicating a steady trading range. Analysts continue to anticipate the US dollar to stay within the 1.2785-1.2815 range.
Over the next three weeks, UOB maintains its view that the risk for USD is on the downside. While price action suggests downside risk, the analysts state that USD must breach 1.2765 clearly before any move to 1.2740 can be expected. The confirmation of a break below 1.2765 would signal fading downside risk. Conversely, a breach of the 1.2840 resistance level would indicate fading downward pressure.
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