Singapore Dollar Capped by Support Level as Momentum Fades

According to UOB's Quek Ser Leang, the Singapore Dollar (SGD) has an upside bias capped against the US Dollar (USD). The USD/SGD exchange rate slipped to a low of 1.2809 on Friday but closed near 1.2821, with an intraday bias still pointing lower. However, the significant support at 1.2790 may hold unless momentum improves.

For the short-term view, the bias remains tilted to the downside, but any decline in the USD/SGD exchange rate may not break through the significant support at 1.2790. On the upside, a breach of 1.2845 would indicate that the downside bias has faded.

In the 1-3 week horizon, further losses require a clear break below 1.2790. The strong momentum suggests further downside risk, but the USD must break and hold below the significant support at 1.2790 before further declines are likely.