United Overseas Banks Quek Ser Leang and Lee Sue Ann expect USD/SGD to remain directionless in the near term, with intraday trading confined to a tight 1.2900–1.2925 band. Over the coming weeks, the pair is seen oscillating in a broader 1.2875–1.2955 range as earlier downside momentum has faded. A deeper correction would require a break of the 1.2865 55‑day EMA support.
Dollar-Singapore Dollar trapped in tight band
“24-HOUR VIEW: While we indicated yesterday that ”there has been a tentative increase in upward momentum,“ we pointed out that ”it is insufficient to indicate a continued rise.“ We held the view that USD ”is more likely to trade within a higher range of 1.2900/1.2930.“ However, USD traded sideways between 1.2898 and 1.2923, closing little changed at 1.2911 (-0.09%). Momentum indicators are mostly flat, and USD could continue to trade sideways today, most likely between 1.2900 and 1.2925.”
“1-3 WEEKS VIEW: Last Thursday (16 Jul, spot at 1.2885), we indicated that ”downward momentum is starting to build, and should USD close below 1.2860, it could trigger a deeper decline.“ Two days ago (21 Jul, spot at 1.2910), we highlighted the following: ”USD traded in a quiet manner over the past few days, and downward momentum is starting to ease. However, as long as 1.2930 (‘strong resistance’ level) is not breached, the risk of USD breaking and closing below 1.2860 remains, though the odds are not high.“ USD traded in a quiet manner over the past couple of days, and downward momentum has largely faded. From here, USD is likely to trade in a range between 1.2875 and 1.2955.”