OCBC strategists Sim Moh Siong and Christopher Wong note USD/SGD rebounded sharply after Iran reclosed the Strait of Hormuz, reversing Friday’s drop to 1.2667. While daily momentum remains bearish, RSI is turning up from oversold, with key support at 1.2700 and 1.2670 and resistance at 1.2750/60, 1.2800 and 1.2850. Focus stays on whether parties reach a deal or escalate militarily in coming days.
Safe-haven bid lifts pair off lows
“USD/SGD had traded as low as 1.2667 last Fri, on news of conditional open of passageway at strait of Hormuz.”
“But the pair rebounded sharply this morning in early trade following the weekend setback – reclosure of the strait.”
“Focus remains on whether both parties manage to get a deal or if there are further military escalation in the next 24-48 hours.”
“Bearish momentum on daily chart intact but shows tentative signs of fading while RSI shows signs of rising from near oversold conditions.”
“Key support at 1.27, 1.2670 (76.4% fibo). Resistance at 1.2750/60 levels (50 DMA, 50% fibo), 1.28 levels (21, 100 DMAs, 38.2% fibo retracement of 2026 low to high), 1.2850 (200 DMA, 23.6% fibo).”
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Source: https://www.fxstreet.com/news/usd-sgd-rebound-risk-after-hormuz-setback-ocbc-202604202052
