Singapore Dollar: Near-term pressure against US Dollar - OCBC
OCBC’s Sim Moh Siong and Christopher Wong say the Singapore Dollar (SGD) slipped as the broad Dollar rebounded after Jackson Hole, but still retains relative resilience thanks to the S$NEER policy and firm domestic fundamentals.
The Singapore Dollar (SGD) experienced a decline as the US Dollar (USD) rebounded following the Jackson Hole event, according to OCBC’s Sim Moh Siong and Christopher Wong. Despite this, the SGD maintains a relative level of resilience due to the Singapore Exchange Rate Management Act (S$NEER) policy and robust domestic fundamentals.
However, further downside for USD/SGD may prove challenging in the near term. Risks are predominantly skewed to the upside, with key resistance levels at 1.2740 and 1.2780/1.2790, while support is found at 1.2680 and 1.2650. A renewed downward movement would likely necessitate softer US data and a resurgence in broader USD weakness, with RMB conditions also playing a significant role.
On the daily chart, there is a mild bearish trend, although the Relative Strength Index (RSI) has risen. The risks are currently tilted towards the upside. Technical analysis indicates resistance at the 61.8% Fibonacci retracement level of the 2026 low to high range, as well as the 50% Fibonacci level and the 21-day moving average (DMA). Support is present at the 76.4% Fibonacci level and the 1.2650 mark.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
