OCBC analysts Sim Moh Siong and Christopher Wong assessed the recent movements in the USD/SGD currency pair following a decline after the US payroll data release. The pair was last observed trading near the 1.28 level, with analysts noting that while bearish momentum remains, it is beginning to show signs of waning. The Relative Strength Index (RSI) is also turning higher from near oversold conditions, suggesting that a technical rebound in USD/SGD cannot be ruled out in the short term [1].
Key technical levels were highlighted: resistance is identified at 1.2830/40, which corresponds to the 100 and 200-day moving averages and the 38.2% Fibonacci retracement of the 2026 low to high, and at 1.2870/90, which aligns with the 21 and 50-day moving averages and the 23.6% Fibonacci retracement. Support levels are noted at 1.2770, the recent low, and 1.2740, the 61.8% Fibonacci retracement [1].
The analysts emphasized that the near-term direction of USD/SGD will be influenced by broader movements in the US dollar and USD/CNY, with particular attention on upcoming US economic data releases this week, including CPI, PPI, and, to a lesser extent, retail sales. These data points are expected to provide further cues for the currency pair's direction [1].
CONCLUSION
The Singapore dollar's recent decline against the US dollar appears to be stabilizing, with technical indicators suggesting a potential rebound. Market participants are closely watching upcoming US economic data for further direction in the USD/SGD pair.