UOB analyst Quek Ser Leang observed a sharp decline in the USD/SGD pair, with the US dollar dropping to a low of 1.2901, a move that was not anticipated as range-trading had been expected previously [1]. Despite the steep fall, UOB considers the move to be overdone and notes that the decline has not yet stabilized. In the short term, the bank expects the USD/SGD to potentially dip below the 1.2900 level and test major support at 1.2890, though a clear break below this support is considered unlikely [1].
Intraday resistance is identified at 1.2935, with a stronger resistance at 1.2950. A breach of the 1.2950 level would indicate that the recent decline has stabilized [1]. For the next one to three weeks, UOB projects that USD/SGD will trade in a slightly higher range of 1.2890 to 1.2990, revising their previous expected range upwards from 1.2870–1.2970 [1]. The bank maintains a neutral stance on the pair, expecting continued range-trading rather than a sustained directional move [1].
No specific market reactions or broader implications for other asset classes were discussed in the article. Similarly, there were no forward-looking statements from other analysts or references to macroeconomic drivers in the source [1].
CONCLUSION
UOB expects the USD/SGD pair to remain range-bound in the near term, with key support at 1.2890 and resistance at 1.2950. The bank sees the recent sharp drop as overdone and does not anticipate a sustained move below support. Market participants are advised to watch for stabilization signals within the revised trading range.