The US Dollar (USD) may fall to 7.2900, with the next support at 7.2800 unlikely to be threatened, according to UOB Group analysts Quek Ser Leang and Peter Chia.
24-Hour View:
“We noted yesterday that the underlying tone still appeared firm, expecting the USD to edge above 7.3100. However, we highlighted that the next resistance at 7.3200 was unlikely to come into play. Subsequently, the USD did edge above 7.3100, reaching a high of 7.3114, before sharply dropping to a low of 7.2924. The USD then rebounded and closed at 7.3025 (-0.06%). Downward momentum is starting to build, suggesting the USD could drop to 7.2900, with the next support at 7.2800 unlikely to be threatened. Resistance stands at 7.3050, followed by 7.3100.”
1-3 Weeks View:
“We have maintained a positive outlook on the USD over the past two weeks. In our latest analysis from last Thursday (27 Jun, spot at 7.2990), we indicated that the USD could break above 7.3100, though it was too early to determine if the significant resistance at 7.3400 would come into view. Yesterday, the USD briefly rose above 7.3100, hitting a high of 7.3114, before sharply falling to 7.2924. While our ‘strong support’ level at 7.2880 has not been breached, upward momentum has significantly dissipated. Current price movements suggest a consolidation phase, with the USD expected to trade between 7.2700 and 7.3100 for the time being.”
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