USD/SGD: Downward trend strengthens ahead of MAS announcement – OCBC

USD/SGD Outlook: Bearish Signals and MAS Policy Expectations

According to OCBC analysts Christopher Wong and Sim Moh Siong, the USD/SGD currency pair has weakened recently as investors anticipate possible easing of geopolitical tensions. Technical indicators suggest that the previous upward trend is losing strength, with signs pointing toward a shift to a bearish phase. The strategists identify important support and resistance zones between 1.2810–1.2780 and 1.29–1.2940. With the Monetary Authority of Singapore (MAS) meeting approaching, OCBC expects all policy options to be considered, but favors a sharper slope for the S$NEER policy band.

Technical Levels to Watch Before MAS Announcement

Overnight, USD/SGD continued to decline as markets responded to hopes of reduced tensions. The pair was last quoted at 1.2845. Daily chart analysis reveals diminishing bullish momentum, accompanied by a softening RSI indicator.

The price action displays a bearish engulfing candlestick pattern, indicating possible short-term downward pressure. Key support is found at 1.2810/20, which aligns with the 21 and 100-day moving averages, and at 1.2780, representing the 38.2% Fibonacci retracement from the November high to the 2026 low.

If the price falls below these levels, the next support is at 1.2780 (38.2% Fibonacci retracement) and 1.2740 (50-day moving average). Resistance is expected at 1.29 (61.8% Fibonacci retracement) and 1.2940.

OCBC notes that while all policy options remain possible, they are inclined toward a steeper S$NEER slope adjustment.

This article was produced with assistance from an AI tool and reviewed by an editor.