United Abroad Financial institution’s (UOB) Quek Ser Leang notes USD/SGD is edging greater after a interval of tight consolidation, with intraday upside seen as restricted beneath close by resistance. Whereas short-term momentum has turned up, the financial institution nonetheless flags elevated danger of a break underneath 1.2890 on a 1–3 week horizon, at the same time as longer-term weekly indicators level to potential energy towards 1.3095.
Upward bias capped beneath resistance
“24-HOUR VIEW: Whereas we famous yesterday that “there was a slight improve in downward momentum,” we identified that “that is prone to result in USD buying and selling in a decrease vary of 1.2900/1.2935 fairly than a sustained decline.” USD then traded between 1.2906 and 1.2934, closing largely unchanged at 1.2929 (+0.04%). This time round, there was a slight improve in upward momentum. As we speak, USD might edge greater, however it’s unlikely to interrupt above 1.2955. Be aware that there’s one other resistance at 1.2940. Assist is at 1.2920 and 1.2910.”
“1-3 WEEKS VIEW: After anticipating USD to commerce in a spread for a couple of week, we highlighted yesterday (07 Jul, spot at 1.2915) that “downward momentum has ticked up, and the chance of USD breaking beneath 1.2890 is growing.” We added, “a breach of 1.2955 (‘robust resistance’ stage) would point out that USD is prone to proceed to commerce in a spread.” There isn’t a change in our view”
(This text was created with the assistance of an Synthetic Intelligence software and reviewed by an editor. Know extra.)
