What is the key resistance level for the STI proxy?

The current critical resistance gate for the STI proxy (EWS) is 28.10 USD.

How does the US Dollar impact the Singapore Index?

A softer US Dollar (lower UUP/DXY) generally improves funding conditions for non-US markets like the STI, supporting a risk-on environment.

What is the recommended trade setup for STI?

A potential pullback-long entry is watched near 28.03 with a stop at 27.92, targeting 28.21.

STI Index Analysis: EWS Proxy 28.10 Resistance | FXPremiere

The Straits Times Index (STI) proxy EWS shows orderly risk-add behavior as it tests the 28.10 resistance gate amid a softening US Dollar and compressed risk premia.

The Straits Times Index (STI), via its US-listed ETF proxy (EWS), displayed a constructive tape during the January 23rd session, as risk premia compressed in an orderly fashion. Trading at 28.07 USD (+0.59%), the index is currently navigating a critical decision band between the 28.00 pivot and the 28.10 resistance gate.

Market Context and Financial Conditions

Current market dynamics suggest a "controlled risk-add" environment. The durable signal for the STI has emerged from successful retests rather than initial impulsive moves. Cross-asset overlays support this bullish tint, with the US Dollar (UUP) trading down 0.50% and Treasury yields (TLT) gaining 0.43%, easing global funding conditions for non-US beta.

While lower volatility currently supports the index, market participants are looking for formal confirmation at the next Asia open to validate the sustainability of this move. The primary driver remains trade acceptance at key levels rather than sheer momentum noise.

Session Timeline and Execution Windows

Asia Close to London Open: Range discipline held firmly, with the first retest setting a positive tone for the morning session.
London Morning: Extension occurred in incremental steps, reflecting a cautious participant base demanding confirmation at the 28.10 gate.
New York Open: The session tested buyer conviction; maintaining levels above the pivot during this window is essential to avoid a snapback.

Levels and Triggers: The 28.10 Decision Band

The tactical map for the STI is defined by the 28.00–28.10 zone. Traders should monitor "acceptance"—defined as sustained trading and volume support—above or below these markers.

Key Technical Levels

Resistance Gate (28.10): Acceptance above this level opens a path toward 28.30.
Pivot Point (28.00): The primary support level; a break-and-hold below this re-opens defensive targets near 27.70.

Probability-Weighted Scenarios

Base Case (64%): A gradual grind higher while volatility remains offered. The trade is invalidated if price holds below 28.00.
Reversal (19%): A sudden bounce in volatility forces mean reversion into the pivot band, threatening the current bullish structure.
Extension (17%): High-conviction acceptance above 28.10 converts the resistance into a trending floor.

Risk Budgeting and Positioning

Despite the calm regime, experts at FXPremiere Markets advise against over-sizing. A two-step scaling approach is recommended: initiate small positions on the structural break, and add only after acceptance is verified above 28.10. This reduces the risk of being caught in "false breaks" common in low-volatility environments.

If the tape slips below the 28.00 pivot, traders should reduce gross exposure quickly and revert to a tactical defensive stance. The correlation with the USD impulse (UUP) remains a critical factor; any sharp reversal in the Greenback could tighten funding conditions and cap current upside potential.