The Singapore dollar maintains mild upward momentum against the US dollar as UOB currency strategist Quek Ser Leang confirms continued downward pressure on the USD/SGD pair. The currency pair dropped to 1.2775 before staging a modest recovery, with technical analysis suggesting another potential test of that level during today’s trading session.
UOB expects strong support to emerge at 1.2765, indicating limited downside for the dollar against Singapore’s currency in the near term. The Singaporean dollar’s resilience reflects ongoing pressure on the greenback as traders position themselves in Asian currency markets. The 1.2765 level represents a critical floor that technical analysts are monitoring closely for any breakdown signals.
Market participants trading USD/SGD should watch for consolidation between current levels and the 1.2775 retest zone, with position adjustments likely if support at 1.2765 shows signs of weakening.
FXnCO Insight
Traders should set stops below 1.2765 when shorting USD/SGD, as a breach of this support level could trigger accelerated Singaporean dollar strength.
Source: FXStreet