United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note USD/SGD was broadly flat on Tuesday, with SGD NEER trading 1.5–2.0% above its mid-point, implying a 1.2773–1.2837 range.
Intraday, they expect consolidation between 1.2805 and 1.2840
Over the coming weeks, downside risk persists but only below 1.2790, with 1.2765 the next level if that support breaks. Downside bias while range persists “24-HOUR VIEW: We expected USD to “trade in a range between 1.2805 and 1.2845” yesterday. However, USD traded within a narrower range than expected (1.2815/1.2840), closing largely unchanged at 1.2819 (-0.06%).
Momentum indicators are mostly flat, and we continue to expect USD to trade in a range today, most likely between 1.2805 and 1.2840.” “1-3 WEEKS VIEW: On Monday (03 Aug, spot at 1.2815), we highlighted that while the recent strong momentum “suggests further downside risk, USD must break and hold below the significant support at 1.2790 before further declines are likely.” Although USD subsequently tested 1.2790, it has not been able to make further headway on the downside. That said, we will continue to hold the same view as long as 1.2860 (‘strong resistance’ level previously at 1.2875) is not breached. Looking ahead, the next level to watch below 1.2790 is 1.2765.” Author