SGD: Stability To Reign In 2010

Following nine months of appreciation against the US$, we now expect the Singapore dollar to remain range bound between SGD1.3780/US$ and SGD1.4063/US$ over the short term. Critical to this outlook is the recent piercing of nine-month trendline support at SGD1.3890/US$ on November 6 which suggests to us that a short-term top may have been formed. That said, should resistance at SGD1.3780/US$ be decisively taken out, we highlight the potential for further upside towards the all-time high of SGD1.3440/US$.

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