The US Dollar (USD) is expected to trade within a range of 7.2920 to 7.3060, with a potential break above 7.3100, according to analysts at UOB Group. However, it remains uncertain if the next significant resistance level of 7.3400 will be reached.
24-Hour View:
“USD traded quietly two days ago,” noted the analysts. “Yesterday, we observed a slight increase in momentum and anticipated an upward movement, although not reaching the major resistance at 7.3000.” Contrary to expectations, the USD surpassed 7.3000 and neared 7.3100, peaking at 7.3080. The subsequent pullback suggests that the USD is likely to trade within a range of 7.2920 to 7.3060 today, rather than continuing its ascent.
1-3 Weeks View:
UOB turned positive on the USD early last week. “In our latest update last Friday (June 21, spot at 7.2920), we indicated that further USD strength was likely, targeting resistance levels at 7.3000 and 7.3100.” After a period of quiet trading, the USD surged to a high of 7.3080. While there is room for further appreciation, it is too early to predict if the significant resistance at 7.3400 will be reached. The upside risk remains intact as long as the USD does not breach the 7.2800 level, previously noted as ‘strong support’ at 7.2700.
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