United Overseas Bank (UOB) strategists Quek Ser Leang and Lee Sue Ann report that the USD/SGD currency pair has experienced a strong rebound, with short-term momentum now pointing higher. The analysts note that while there is room for the US Dollar to continue rising against the Singapore Dollar, significant resistance is expected at the 1.2705 level, which is likely to limit further gains in the near term. An additional resistance level is identified at 1.2695, with support levels at 1.2670 and 1.2660.
In their 1-3 week outlook, UOB strategists highlight that their previously slightly negative stance on the US Dollar has shifted following the recent price action. After a period of drifting lower, the USD/SGD pair rebounded sharply, breaking above the 'strong resistance' level at 1.2675 and reaching a high of 1.2686. This move has caused downward momentum to fade and upward momentum to build. However, the analysts emphasize that a clear break above 1.2705 is necessary for a sustained rise in the pair. They also stress that the US Dollar must hold above the 'strong support' level at 1.2640 to maintain the current upside momentum.
The Singapore Dollar Nominal Effective Exchange Rate (NEER) is reported to remain comfortably above its mid-point, suggesting underlying support for the SGD despite the recent USD strength. No specific market reactions or analyst opinions beyond the technical outlook are provided in the source article. [1]
CONCLUSION
UOB strategists see a developing upside bias for USD/SGD, but caution that resistance at 1.2705 could cap further gains unless decisively breached. The pair's ability to hold above 1.2640 will be key to sustaining upward momentum. The Singapore Dollar NEER remains stable, indicating continued support for the SGD.