UOB revises its outlook for the currency pair to neutral, citing faded upward momentum and a projected trading range of 1.2870–1.2970.
The USD/SGD pair has lost its upward momentum after briefly breaching support at 1.2925, prompting UOB to shift its short-term bias to neutral. The pair is expected to trade within a narrow range of 1.2920–1.2950 in the near term, with a broader range of 1.2870–1.2970 over the next 1-3 weeks.
Previously, UOB held a positive view on USD, but the pair failed to sustain gains above 1.2925, printing a low of 1.2922. The decline did not accelerate downward momentum, leading to the neutral revision. Longer-term, weekly momentum still suggests potential for a push above 1.3000 toward 1.3095.
No immediate market reaction was noted, as the shift reflects a consolidation phase rather than a directional breakout.