USD/SGD weakened overnight as markets weighed hopes of de-escalation. The pair was last seen at 1.2845, with daily chart momentum easing and RSI lower.
A bearish engulfing candlestick pattern was noted, suggesting near-term downside pressure. Support is cited at 1.2810/20 (21 and 100 DMAs) and 1.2780 (38.2% Fibonacci retracement from the November high to the 2026 low).
Technical Signals Point Lower
If the pair breaks below, the next support levels are 1.2780 (38.2% Fibonacci) and 1.2740 (50 DMA). Resistance is placed at 1.29 (61.8% Fibonacci) and 1.2940.
Ahead of the Monetary Authority of Singapore meeting, multiple policy outcomes are possible. The note points to a preference for a steeper S$NEER policy band slope.
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We are seeing the USD/SGD pair weaken, with technical charts showing that upward momentum is running out of steam. A bearish engulfing candlestick pattern has appeared, suggesting we could see more downward pressure in the coming weeks. This signals a potential shift in market sentiment against the US dollar.
We can look back to the MAS tightening cycle in 2022 for a historical parallel, when the authority repeatedly steepened the slope to combat inflation. Each of those moves led to periods of significant and sustained Singapore dollar strength. The current economic backdrop is showing similar signs that could prompt the MAS to act decisively again.
Key Levels And Trade Implications
The key levels to watch in the immediate future are the supports at 1.2810 and 1.2780. A firm break below these levels, particularly after the MAS decision, would confirm the bearish trend. This could open the path for a move down towards the 1.2740 mark in the following weeks.
