USD/SGD traded lower, in line with our call for pullback. Pair was last at 1.3128 levels, OCBC’s FX analyst Frances Cheung and Christopher Wong note.

Daily momentum is bullish

“Move lower came amid broad pullback in USD. Daily momentum is bullish while RSI turned lower from near overbought conditions. Further pullback likely.

“Support at 1.3020 (50 DMA), 1.2970/80 levels (23.6% fibo, 21 DMA). Resistance at 1.3140/50 levels (recent high), 1.32 levels (50% fibo retracement of Jul high to Sep low).”

“Decline in S$NEER has moderated and is now stabilizing in its range of 1.6 – 2% above model implied mid. Last estimated at 1.7% above model-implied mid.”