USD/SGD Trading Analysis: Potential Bearish Pullback Ahead
As the USD/SGD pair eases into the trading session, analysts Frances Cheung and Christopher Wong from OCBC FX note some key technical indicators that suggest a possible bearish pullback in the near term.
Technical Indicators:
- Daily momentum is mildly bullish
- Rise in RSI has moderated
- Bearish divergence on MACD
- Rising wedge pattern forming
The technical patterns point to signs of a bearish pullback, with key support levels at 1.3340 (200 DMA) and 1.3290 (61.8% fibo retracement of Jun high to Oct low). On the upside, resistance levels are at 1.3490 and 1.3520.
Market Factors:
Policy uncertainties associated with Trump’s policies, swings in the RMB and JPY exchange rates are expected to drive the USDSGD pair in the near term. The S$NEER was last seen at 1.27% above the model-implied mid.
Key Takeaways for Investors:
- Watch for a potential bearish pullback in the USD/SGD pair
- Key support levels at 1.3340 and 1.3290
- Resistance levels at 1.3490 and 1.3520
- Monitor policy uncertainties and currency swings for market direction
Conclusion:
Keep a close eye on the technical indicators and market factors mentioned above to make informed investment decisions in the USD/SGD pair.