Limits 21-DMA for now – OCBC

USD/SGD’s rebound after last Friday’s NFP was stymied by the 21-DMA, note OCBC FX strategist Frances Cheung and Christopher Wong.

We await US CPI later this evening

“Broader decline in UST, USD yields and JPY strength this morning saw USD/SGD lower. S$NEER was last estimated at ~1.91% above our model’s implied midpoint, with the model’s implied spot lower bound at 1.3010. With S$NEER close to its lower bound, room for further declines in USD/SGD may be limited during the day.”

“However, if the broader USD takes another leg lower, then USD/SGD’s implied lower bound may be lower. The pair was last at 1.3025. Daily momentum is slightly bullish, while the RSI has declined. Consolidation likely near recent lows as markets await FOMC decision next week.”

“Support at 1.30, 1.2953 (recent low). Resistance at 1.3065 (21-DMA), 1.3160 ​​levels (23.6% 2024 fibo retracement from high to low). We are following the US ICC later this evening.”