USD/SGD: Bearish momentum builds into MAS decision – OCBC

💡 DMK Insight

USD/SGD’s recent softness signals a shift in market sentiment, and here’s why that matters: With de-escalation hopes influencing the pair, traders should pay close attention to the technical indicators suggesting a potential bearish phase. The key support levels around 1.2810–1.2780 are critical; a break below these could trigger further selling pressure. Conversely, resistance levels at 1.29–1.2940 will be pivotal for any bullish retracement. If the pair fails to reclaim these levels, it could signal a more prolonged bearish trend, impacting not just USD/SGD but also correlated pairs like AUD/SGD and other regional currencies. But don’t overlook the broader context—if global risk sentiment continues to improve, we might see a temporary bounce. However, the fading bullish momentum suggests that traders should be cautious about entering long positions without clear confirmation. Keep an eye on these levels over the next few days, as they could dictate the short-term direction of the market.