Singapore dollar trend comment September 6, 2010
USD/SGD to be bearish in broad USD trend after last week's low 1.3415. MAS 'went in to smooth the U.S. dollar's fall' Friday as SGD about 2% above midpoint of policy band, person familiar with central bank thinking told Dow Jones. Said MAD will continue smoothing operations, 'but this is a regional issue with widespread weakness for the U.S. currency.' If Asia FX on firm trend this week, it's likely MAS will be in again. Dow Jones technical analysis shows immediate support at 1.3415 (Friday's low); nothing below until 1.3320 (Fibonacci projection). Initial resistance at 1.3624 (Aug 25 peak), above at 1.3677 (Aug high).
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