Singapore Dollar: UOB sees modest upside bias against US Dollar

1.2755–1.2780 frames the modest near-term downside seen for USD/SGD. United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann note that the pair barely moved within a tight range on Thursday, as safe-haven demand and higher Oil prices supported the US Dollar against Asian currencies. Over 1–3 weeks, their outlook remains negative towards 1.2750, provided 1.2795 continues to cap gains.

1.2795 resistance caps modest downside outlook

"24-HOUR VIEW: After USD traded within a tight 1.2771/1.2783 range two days ago, we indicated yesterday that “the price action provides no fresh clues.” We also indicated that USD “could trade between 1.2765 and 1.2785.” USD then traded within a slightly wider range of 1.2762/1.2785, closing unchanged at 1.2774. There has been a slight increase in downward momentum, but it is insufficient to indicate a sustained decline. Today, USD could edge lower, but any decline should stay within a 1.2755/1.2780 range."

"1-3 WEEKS VIEW: We turned negative on USD early this week. In our most recent narrative from Wednesday (21 Oct, spot at 1.2780), we highlighted that “downward momentum has increased further, and USD could decline to 1.2750.” Although USD has traded in a quiet manner since then, we will continue to hold the same view as long as USD holds below 1.2795 (‘strong resistance’ level previously at 1.2805)."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)