United Overseas Bank currency strategists Quek Ser Leang and Lee Sue Ann are maintaining a bullish outlook on the US Dollar against the Singapore Dollar despite the pair showing overbought signals after five straight days of gains. The analysts project USD/SGD has room to climb toward the 1.2980 level in the near term, with resistance capped at the psychologically significant 1.3000 mark.
The assessment comes as the greenback continues its momentum against the Singapore currency, pushing past recent trading ranges. The consecutive daily advances have stretched technical indicators into overbought territory, typically a warning sign for potential reversals, yet UOB strategists remain constructive on further dollar strength.
Traders should watch the 1.2980-1.3000 zone closely as the pair approaches these critical resistance levels. A break above 1.3000 could trigger additional dollar buying, while failure to breach this ceiling may prompt profit-taking after the recent rally.
FXnCO Insight
Position for potential continuation toward 1.2980 but prepare to take profits or tighten stops near the 1.3000 resistance level where upside momentum may stall.
Source: FXStreet