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USD/SGD holds near 1.2820, UOB flags 1.2790 support
UOB expects consolidation between 1.2805 and 1.2840, with further USD downside seen only if USD/SGD breaks and holds below 1.2790, then 1.2765 becomes the next level.
United Overseas Bank analysts Quek Ser Leang and Lee Sue Ann said USD/SGD was broadly flat on Tuesday, with the Singapore dollar supported by SGD NEER trading 1.5% to 2.0% above its mid-point.
They put the implied USD/SGD range at 1.2773 to 1.2837, and said they expect intraday consolidation between 1.2805 and 1.2840.
Looking ahead to the next one to three weeks, the analysts warned that downside risk persists only if USD breaks and holds below the key 1.2790 support level. If that support gives way, they flagged 1.2765 as the next level to watch.
UOB also noted that while USD tested 1.2790, it has not managed further progress lower, and they will keep their broader view unless USD/SGD breaches 1.2860, described as strong resistance.