USD/SGD: Heavy bias – OCBC

USD/SGD resumed its move lower, taking cues from softer UST yields, USD overnight, OCBC’s FX analysts Frances Cheung and Christopher Wong note.

Mild bullish momentum on daily chart fades

“Mild bullish momentum on daily chart faded while RSI fell. Consolidation likely at lower levels. Support at 1.2953 (recent low). Resistance at 1.3065 (21-DMA), 1.3160 levels (23.6% fibo retracement of 2024 high to low).”

“S$NEER was last estimated at ~1.89% above our model-implied mid, with model implied spot lower bound at 1.2979. With S$NEER close to its strong end of its band, the room for further downside in USDSGD will continue to be restrained intra-day unless broader USD takes another leg lower, then the implied lower bound of USD/SGD can shift lower.”