UOB’s Quek Ser Leang and Lee Sue Ann spotlight that USD/SGD surged previous 1.29 after a blowout US nonfarm payrolls report, with the S$NEER nonetheless buying and selling effectively above its mid-point. Within the quick time period, they see scope for a check of the year-to-date excessive close to 1.2930, whereas on a 1–3 week horizon, the main focus shifts to resistance at 1.2960, supplied assist at 1.2830/1.2855 holds.
Upside bias with key resistance ranges
“24-HOUR VIEW: After our expectation for USD to check 1.2855 didn’t materialise final Thursday, we highlighted on Friday that “there stays an opportunity for USD to check 1.2855.” We additionally highlighted that “a breach of 1.2855 just isn’t dominated out, however a continued rise above this degree seems unlikely,” and “the subsequent main resistance at 1.2890 can be unlikely to become visible.” The next worth actions didn’t unfold as anticipated. Whereas USD subsequently rose barely above 1.2855, it retreated to a low of 1.2828, after which in a sudden transfer in the course of the early NY session, jumped to a excessive of 1.2913. Sturdy momentum suggests USD might check the year-to-date excessive, close to 1.2930. The following resistance at 1.2960 is probably going out of attain for now. To maintain the momentum going, USD should maintain above 1.2870.”
“1-3 WEEKS VIEW: Final Tuesday (02 Jun, spot at 1.2785), we highlighted that “there was a slight enhance in upward momentum, however for a continued rise, USD should first shut above 1.2810.” After USD rose and closed at 1.2841, in our most up-to-date narrative from final Thursday (04 Jun, spot at 1.2835), we highlighted that “the value motion suggests USD might rise additional to the numerous resistance at 1.2855.” We added, “wanting forward, ought to USD break above 1.2855, the main focus will shift to a different vital resistance at 1.2890.” We didn’t anticipate USD to carry off on Friday and surge above 1.2890, because it printed a excessive of 1.2913. The sharp enhance in upward momentum is more likely to result in additional USD energy. The extent to look at is 1.2960. We are going to preserve our constructive USD view so long as it holds above 1.2830 (‘sturdy assist’ degree was at 1.2800 final Friday). Within the near-term, 1.2855 is already a agency assist degree.”
(This text was created with the assistance of an Synthetic Intelligence instrument and reviewed by an editor.)
