USD/SGD: Strong Bias – OCBC

USD/SGD resumed its downward move, taking cues from weaker UST, USD yields overnight, note OCBC FX analysts Frances Cheung and Christopher Wong.

The slightly bullish momentum on the daily chart is fading

“The slight bullish momentum on the daily chart has declined while the RSI has declined. Consolidation likely at lower levels. Support at 1.2953 (recent low). Resistance at 1.3065 (21-DMA), 1.3160 ​​levels (23.6% 2024 fibo retracement from high to low).”

“S$NEER was last estimated at ~1.89% above our model’s implied mid-level, with the model’s implied spot lower bound at 1.2979. With S$NEER near its strong end of its band, room for further downside in USDSGD will continue to be tight on the day, unless the broader USD breaks another level, then USD/SGD’s implied lower bound it can move lower.”