Momentum for the US Dollar (USD) has slightly increased, but not sufficiently to indicate a sustained advance, according to UOB Group FX analysts Quek Ser Leang and Lee Sue Ann. They predict that the USD is likely to trade within the 7.2600/7.3100 range for now.
24-Hour View:
“Our previous expectation for the USD to trade within a sideways range of 7.2650/7.2850 was incorrect. Instead of remaining within this range, the USD climbed, reaching a high of 7.2924. Although upward momentum has increased slightly, today, as long as the 7.2810 level (with minor support at 7.2845) is not breached, the USD could rise to 7.2990 before facing the risk of a pullback. The major resistance at 7.3100 is unlikely to be challenged today.”
1-3 Weeks View:
“Our most recent outlook from last Friday (12 Jul, spot at 7.2685) suggested that the USD was ‘likely to trade with a downward bias towards 7.2400.’ We emphasized that ‘the downward bias would remain as long as the USD stays below 7.2910.’ However, yesterday, the USD broke above the 7.2910 level (reaching a high of 7.2924). While downward momentum has diminished, and upward momentum has slightly increased, it is not enough to indicate a sustained advance. Therefore, the USD is more likely to trade within the 7.2600/7.3100 range from here.”
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