UOB Group FX analysts Quek Ser Leang and Lee Sue Ann have suggested that the US Dollar (USD) has room to decline further, with the next critical level to watch being 154.50.
USD Set to Reach 154.50
24-Hour View:
In their latest analysis, the analysts noted that the USD had the potential to retest the 156.25 level before a more sustained recovery was likely. However, instead of rebounding, the USD broke below 156.25, reaching a low of 155.55. Despite this sharp drop indicating oversold conditions, there remains room for further decline. The analysts are cautious about whether the USD can sustain a position below 155.35. The major support level at 154.50 is not expected to come under immediate threat, with resistance levels at 156.15 and 156.40.
1-3 Weeks View:
Looking ahead, the analysts observe a renewed downward momentum. If the USD breaks and maintains a position below 155.35, the next significant level to watch will be 154.50. This perspective aligns with their previous narrative from last Friday, when the USD was at 157.35. At that time, they suggested that a breach of 158.50 would indicate stabilization of the recent weakness in the USD. However, the sharp drop to 155.55 has renewed downward momentum. The strong resistance level has now been adjusted lower to 157.15 from the previous 158.50.
In summary, while the USD has shown a sharp decline, analysts believe there is still potential for further drops, with a crucial support level at 154.50.
Related Topics:
