UOB’s Quek Ser Leang notes that USD/SGD’s sharp drop towards 1.2900 seems overdone, however the pair should check assist close to 1.2890 within the close to time period earlier than stabilising. Intraday resistance is seen round 1.2935/1.2950, whereas for the subsequent one to a few weeks the financial institution expects USD/SGD to commerce in a barely greater 1.2890–1.2990 vary.
Brief time period draw back, broader vary
“24-HOUR VIEW: We didn’t count on the sharp drop in USD yesterday that despatched it to a low of 1.2901 (we had anticipated range-trading). Whereas the sharp drop seems to be overdone, the decline has not fairly stabilised. Right now, USD may dip under the 1.2900 stage and probably check the foremost assist at 1.2890. A transparent break under 1.2890 is unlikely. Resistance is at 1.2935; a breach of 1.2950 would counsel that the decline has stabilised.”
“1-3 WEEKS VIEW: On Tuesday (30 Jun, spot at 1.2930), we indicated that USD “is impartial now,” and we anticipated USD to “commerce in a variety between 1.2870 and 1.2970.” After USD rose to 1.2975 and the pulled again, we highlighted the next yesterday (02 Jul, spot at 1.2960): “The slight uptick in momentum will not be ample to point a sustained advance. We proceed to count on range-trading, however we’re revising our anticipated vary greater to 1.2890/1.2990. We proceed to carry the identical view.”
(This text was created with the assistance of an Synthetic Intelligence instrument and reviewed by an editor.)
