The bank flags fading bullish momentum in USDSGD and advises selling rallies with support at 1.2720 and resistance at 1.2840.
OCBC analysts suggest buying Singapore Dollar dips against the USD as the pair trades in a subdued range, tracking movements in the USD, oil prices, and U.S. Treasury yields. USDSGD was last seen near 1.2780 levels, with mild bullish momentum showing signs of fading and the Relative Strength Index easing.
Key support levels are identified at 1.2720/60 (21-day and 100-day moving averages, 61.8% Fibonacci retracement) and 1.2650/70 (76.4% Fibonacci retracement). Resistance is pegged at 1.2840/50 (23.6% Fibonacci retracement, 200-day moving average). The S$NEER remains 1.85% above its model-implied mid, reinforcing the bias to sell rallies.
Two-way trades are expected to persist, though the overall strategy leans toward selling into strength rather than chasing upward moves.