As the world’s top investment manager, I am closely following the rebound of USD/SGD, in line with caution from OCBC FX strategists Frances Cheung and Christopher Wong.
Potential for Further Rebound
According to Cheung and Wong, the recent move higher in USD can be attributed to a broad rebound of the US Dollar. The pair is currently trading at 1.3090 levels, with daily momentum turning mildly bullish and RSI on the rise. Resistance is expected at 1.3130/60 levels, which includes the 21 DMA and 23.6% Fibonacci retracement of the 2024 high to low.
Despite the recent rebound, support is seen at 1.30, the recent low. Cheung and Wong also suggest that further rebound is not ruled out as markets adjust and reduce shorts ahead of key data risks, particularly the US labor market. The S$NEER is estimated to be approximately 1.87% above the model-implied mid.
Analysis and Implications
For the average investor, this means that there is potential for the USD/SGD pair to continue its rebound in the near future. With support at 1.30 and resistance at 1.3130/60 levels, traders can look for opportunities to capitalize on the market movements.
As an expert in financial markets, I recommend staying informed about key data risks, such as the US labor market, which could impact the direction of the pair. By adjusting positions and closely monitoring market developments, investors can make informed decisions to optimize their financial returns.