Singapore Dollar Faces Bearish Pressure Amid Strong US Dollar Momentum
According to UOB's analysis, the Singapore Dollar (SGD) is facing bearish pressure against the US Dollar (USD). The USD/SGD pair surged to its largest one-day gain in three months, closing at 1.2783 after reaching a high of 1.2784.
The analysts note that despite being overbought, the strong momentum could continue to push the price upwards. However, they caution that the next resistance level at 1.2835 is unlikely to come under threat.
Looking ahead, UOB's Nominal Effective Exchange Rate (NEER) model suggests that USD/SGD should trade between 1.2725 and 1.2785 intraday. The analysts also highlight support levels at 1.2760 and 1.2740, which they believe will hold for now.
The outlook for the USD remains positive, with targets set at 1.2800 and 1.2835. A breach of 1.2710 would indicate that the USD is not strengthening further, according to UOB's analysis.