United Overseas Bank’s Quek Ser Leang notes that USD/SGD has rebounded from its recent low near 1.2660 and upward momentum is starting to build. The pair is seen as broadly supported above 1.2735, with major support at 1.2660. However, a significant resistance zone at 1.2880–1.2900, including a declining trendline and 55-week EMA, may cap gains unless broken.
Pair supported but resistance looms overhead
“Two weeks ago, USD/SGD tested the 1.2660 level as it dropped to a low of 1.2653. The weekly MACD dipped only slightly into negative territory, but following the strong rebound last week, it has flipped back to positive.”
“Upward momentum is starting to build, but while there is scope for USD/SGD to rise further, it is worth noting that there is a significant resistance zone between 1.2880 and 1.2900. The declining trendline connecting the highs of 1.3095 and 1.2930 sits at 1.2880, while the 55-week EMA is currently at 1.2900.”
