USD/SGD: Continues to consolidate – OCBC

USD/SGD has corrected higher for 4 consecutive days this week, tracking the uptick in USD. Pair was last at 1.2978, OCBC’s FX analysts Frances Cheung and Christopher Wong note.  

Daily momentum is mild bullish

“Focus today on US NFP. Risks are likely to be symmetric for USDSGD. If print comes in hotter, then the corrective rebound can continue but if NFP prints lower, then the pair should consolidate with a downside bias.”

“Daily momentum is mild bullish while rise in RSI moderated. Consolidation likely ahead of NFP data. Resistance at 1.2980 (23.6% fibo retracement of Jul high to Sep low), 1.3070 (50 DMA). Support at 1.2940 (21 DMA), 1.2890, 1.28 levels. S$NEER was last estimated at ~1.85% above our model-implied mid.”