United Abroad Financial institution’s Quek Ser Leang and Lee Sue Ann observe that USD/SGD stayed agency on Monday, closing at 1.2945 after buying and selling between 1.2906 and 1.2950, with the Singapore Greenback (SGD) Nominal Efficient Change Price (NEER) holding 1.68% above its mid-point. They see short-term upward momentum constructing, however count on positive factors to be capped beneath 1.2990, with assist round 1.2935/1.2920 and a broader 1.2890–1.2990 vary.
Greenback energy capped beneath resistance
“24-HOUR VIEW: After USD opened on a agency observe yesterday, we highlighted the next: “Upward momentum is tentatively constructing, and the bias for USD immediately is tilted to the upside. Nevertheless, it’s unclear for now whether or not there’s enough momentum for a break above 1.2955 (there’s one other resistance stage at 1.2945).” USD then rose to a excessive 1.2950. Upward momentum has elevated additional, however not considerably. At present, USD might edge above 1.2955 and check 1.2965. We don’t count on the main resistance at 1.2990 to come back below menace. Assist is at 1.2935, adopted by 1.2920.”
“1-3 WEEKS VIEW: In our most up-to-date narrative from final Thursday (09 Jul, spot at 1.2940), we indicated that the latest “delicate downward stress has eased,” and USD “is more likely to commerce in a variety between 1.2890 and 1.2990.” Whereas USD has remained throughout the vary, the tentative build-up in short-term upward momentum suggests USD is more likely to edge larger from right here. Nevertheless, the chance of a break above 1.2990 is just not excessive for now. To maintain the momentum build-up, USD should maintain above 1.2900 (‘sturdy assist’ stage).”
(This text was created with the assistance of an Synthetic Intelligence device and reviewed by an editor. Know extra.)
