Singapore Dollar: Decline risks assessed against US Dollar – OCBC

OCBC analysts Sim Moh Siong and Christopher Wong discuss USD/SGD after its post-payroll decline, noting the pair last traded near 1.28 with bearish momentum starting to wane. They highlight potential technical rebound risks, outlining key resistance around 1.2830/40 and 1.2870/90 and support near 1.2770 and 1.2740. They add that near-term direction will depend on broader USD and USD/CNY moves and upcoming US data.

Analysts flag fading downside momentum

"USD/SGD consolidated overnight after the decline post-payroll on Fri. Last seen at 1.28 levels."

"Bearish momentum intact but shows signs of waning while RSI shows signs of turning higher from near oversold conditions. Rebound risks not ruled out in the interim."

"Resistance at 1.2830/40 levels (100, 200 DMAs, 38.2% fibo retracement of 2026 low to high), 1.2870/90 levels (21, 50 DMAs, 23.6% fibo). Support at 1.2770 (recent low), 1.2740 (61.8% fibo)."

"Near term, USD/SGD is likely to take cues from broader moves in USD and USD/CNY. This puts focus on upcoming US data releases this week, including CPI, PPI and to a lesser extent, retail sales."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)