Singapore Dollar: Near-term downside risks against US Dollar – OCBC

OCBC Bank strategists Sim Moh Siong and Christopher Wong note that USD/SGD traded slightly firmer as resilient US data halted US Dollar downside pressure, though the pair remains subdued and rangebound ahead of Chair Warsh’s Jackson Hole speech. Daily momentum remains mildly bearish, but RSI is turning higher from near-oversold conditions, leaving room for some near-term upside in USD/SGD and therefore downside risks for the Singapore Dollar. Resistance is seen at 1.2740 and 1.2780/90, with support at 1.2680 and 1.2650.

Rangebound trade before Jackson Hole

"USD/SGD traded a touch firmer overnight as resilient US data halted USD downside pressure."

"That said, the pair continues to trade in subdued and within recent range, as markets await catalysts later this week – Chair Warsh’s speech at Jackson Hole later this Fri (10pm SGT)."

"Pair was last seen at 1.2720 levels. Mild bearish momentum on daily chart intact but RSI shows signs of rising from near oversold conditions. Some upside risks not ruled out in the interim."

"Resistance at 1.2740 levels (61.8% fibo retracement of 2026 low to high), 1.2780/90 levels (50% fibo, 21 DMA). Support at 1.2680 (76.4% fibo), 1.2650."

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