Singapore Dollar: Downtrend targets 1.3000 against US Dollar – UOB
United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann keep a constructive stance on USD/SGD after five consecutive daily gains, noting overbought conditions but still expecting further upside. In the near term, they see scope for a test of 1.2980 while 1.3000 caps. On a 1–3 week horizon, the bank’s next technical target is 1.3000, provided 1.2915 holds.
Overbought Dollar still grinding higher
"24-HOUR VIEW: Two days ago, USD edged to a high of 1.2939. When USD was at 1.2935 yesterday, we indicated that “upward momentum has not increased by much, but there is scope for USD to continue to edge higher to 1.2950.” We also indicated that “the major resistance at 1.2960 is unlikely to come into view.” While our expectation of a higher USD was correct, we did not expect it to grind to a high of 1.2974. Conditions are overbought, and upward momentum remains lacklustre. That said, as long as USD holds above 1.2940, there is a chance for it to test 1.2980. This time around, the next resistance at 1.3000 is unlikely to come into view."
"1-3 WEEKS VIEW: We turned positive on USD late last week. In our most recent narrative from Monday (22 Jun, spot at 1.2920), we indicated that “the price action suggests USD could rise toward 1.2960.” Yesterday, USD rose and exceeded 1.2960, printing a high of 1.2974. USD closed higher for the fifth straight day at 1.2969 (+0.24%). Given that conditions are overbought, we would have preferred a more impulsive advance, but the overall price action continues to suggest further USD strength. The next technical target is 1.3000. We will maintain our positive USD view as long as 1.2915 (‘strong support’ level was at 1.2890 yesterday) is not breached."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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