United Overseas Bank’s (UOB) Quek Ser Leang notes that USD/SGD has slipped into a short-term range phase after a sharp pullback, with intraday trading expected between 1.2735 and 1.2775. However, the 1–3 week outlook remains constructive, with the advance from late last week intact unless 1.2710 breaks, and upside levels at 1.2800 and 1.2835 still in focus.

Dollar-Singapore range but bias positive

“24-HOUR VIEW: Following the sharp rally two days ago, we highlighted yesterday that “while strong momentum could outweigh the current deeply overbought conditions, it remains to be seen whether USD can reach 1.2800.” We indicated the following: “support is at 1.2760; the next support at 1.2740 should hold for now.” The subsequent price movements did not unfold as expected. USD pulled back sharply to 1.2738 before recovering to close 0.20% lower at 1.2758. The current price movements are likely part of a range-trading phase. Today, USD is likely to trade between 1.2735 and 1.2775.”

“1-3 WEEKS VIEW: Yesterday (17 Sep, spot at 1.2780), we highlighted that “the outlook for USD remains positive.” We also highlighted that “the levels to watch are 1.2800 and 1.2835.” Our view remains unchanged. Overall, only a breach of 1.2710 (no change in ‘strong support’ level) would indicate that the advance from late last week is pausing.”