The US Dollar (USD) could drop further to 160.20 before stabilization can be expected, according to analysts from UOB Group. The recent strength of the USD, observed from the middle of last month, appears to have ended. For the time being, the currency pair is likely to trade within a range of 159.40 to 161.80.
24-Hour View:
On Friday, analysts anticipated that the USD would trade within a 160.80 to 161.80 range. However, this prediction was incorrect as the USD fell to a low of 160.33 before rebounding to close at 160.72, marking a 0.33% decrease. Despite this rebound, the weakness in the USD has not yet stabilized. Today, if the USD remains below 161.15 (with minor resistance at 160.95), it could drop further to 160.20 before stabilization is expected.
1-3 Weeks View:
Last Thursday, with the spot at 161.45, analysts noted that the upward momentum was beginning to slow and indicated that only a breach of 160.45 would suggest that the USD is not strengthening further. On Friday, the USD fell to a low of 160.33, breaching the strong support level of 160.45. This breach signifies that the USD strength observed from the middle of last month has come to an end. Currently, price movements suggest a range trading phase, with the USD likely to trade between 159.40 and 161.80 for the time being.
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