USD/SGD pushed higher after extending its rally to a fifth consecutive daily rise, with the pair printing an intraday peak of 1.2974 after previously reaching 1.2939. The latest move left conditions overbought and momentum described as lacklustre, yet the bank’s near-term framework still allows for further gains if the rate holds above 1.2940. On that basis, UOB sees room to test 1.2980, while 1.3000 is positioned as the next resistance and a cap in the very short run.
Over a 1–3 week horizon, UOB’s technical stance remains positive. It referenced Monday 22 Jun, when spot was 1.2920, and a projected rise towards 1.2960; the pair subsequently exceeded that level and later closed at 1.2969, up 0.24%. The next technical target is set at 1.3000, with the constructive view contingent on 1.2915 holding; an earlier “strong support” marker had been placed at 1.2890.
Technical and Fundamental Drivers
We are seeing continued US dollar strength against the Singapore dollar, with five straight days of gains. The price action suggests a further grind higher in the coming weeks. Our next technical target is the 1.3000 level.
This upward pressure is supported by solid fundamental data out of the United States. The most recent jobs report for May 2026 showed a robust addition of over 250,000 jobs, while core inflation remains sticky at 3.1%. This data reinforces expectations that the Federal Reserve will hold interest rates steady, creating a favorable environment for the US dollar.
Strategic Trade Positioning
For traders looking to position for this expected rise, we see value in buying USD/SGD call options. Specifically, July 2026 call options with a strike price around 1.2950 could capture the anticipated move toward our target. This provides a direct way to profit from the upward momentum.
Given that the advance has been a slow grind rather than a sharp rally, a bull call spread might be a more cost-effective strategy. This involves buying a call at a lower strike, like 1.2950, and selling a call at a higher strike, such as 1.3000. This approach reduces the initial cost of the trade and profits from a move up to our target.
Our positive outlook for the US dollar will remain intact as long as the exchange rate holds above the 1.2915 support level. A break below this key level would suggest the current upward pressure has faded. We would then need to reassess our bullish positions.
Alternatively, traders confident that support will hold can consider selling out-of-the-money put options. Selling July 2026 puts with a strike price near 1.2900 allows for collecting premium. This strategy profits if USD/SGD stays above the strike price through expiration, which aligns with our view.
