United Abroad Financial institution (UOB) strategists Quek Ser Leang and Lee Sue Ann observe USD/SGD has stabilised after an earlier sell-off, with spot round 1.2905 and intraday value motion anticipated to remain confined between close by assist and resistance. They highlights constructing draw back momentum on a 1–3 week horizon, with 1.2860 as a key set off for a deeper decline, whereas 1.2930 caps the topside.
Greenback-Singapore pair caught in tight band
“24-HOUR VIEW: USD fell to a low of 1.2876 two days in the past. When it was at 1.2885 within the early Asian session yesterday, we highlighted that “the sharp enhance in momentum factors to additional draw back, however any decline is anticipated to face agency assist at 1.2860.” We additionally famous that “the 1.2875 stage is anticipated to supply assist as nicely.” Our view didn’t materialise as USD rebounded to 1.2912 earlier than closing 0.18% increased at 1.2908 (+0.18%). USD seems to have entered a range-trading section, most certainly between 1.2890 and 1.2920.”
“1-3 WEEKS VIEW: Two days in the past (15 Jul, spot at 1.2910), we highlighted that “whereas there’s scope for USD to weaken, on condition that there isn’t a clear enhance in downward momentum, any decline could possibly be contained inside a 1.2860/1.2955 vary.” After USD dropped to a low of 1.2876, we highlighted the next yesterday (16 Jul, spot at 1.2885): “Downward momentum is beginning to construct, and will USD shut under 1.2860, it might set off a deeper decline. On the upside, a breach of 1.2930 (‘sturdy resistance’ stage) would imply that the chance of additional draw back has eased.” Our view stays unchanged.”
(This text was created with the assistance of an Synthetic Intelligence instrument and reviewed by an editor. Know extra.)
