US Greenback (USD) is more likely to edge larger, however any advance is unlikely to achieve the most important resistance at 7.2330. Within the longer run, downward momentum has largely pale; USD is more likely to commerce in a 7.1850/7.2450 vary for now, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Advance is unlikely to achieve 7.2330
24-HOUR VIEW: “Yesterday, we anticipated USD to ‘commerce in a sideways vary of seven.1990/7.2190.’ Our name for sideways buying and selling was not fallacious, though USD traded in a narrower vary than anticipated (7.2042/7.2178), closing largely unchanged (7.2140. +0.06%). Regardless of the quiet worth motion, there was a tentative buildup in upward momentum. Right now, USD is more likely to edge larger, however as momentum isn’t robust, any advance is unlikely to achieve the most important resistance at 7.2330. There may be one other resistance degree at 7.2250. Help is at 7.2100, adopted by 7.2000.”
1-3 WEEKS VIEW: “We’ve got held a adverse USD view since early this month. In our most up-to-date narrative from final Friday (16 Might, spot at 7.2040), we highlighted that USD ‘has not been in a position to make important headway on the draw back.’ We added, ‘Nonetheless, solely a breach of seven.2330 (‘robust resistance’ degree) would point out that the chance of USD declining to 7.1700 has pale.’ Though 7.2330 has not been breached but, after the quiet worth motion over the previous couple of days, downward momentum has largely pale. As an alternative of weakening, USD is more likely to commerce in a 7.1850/7.2450 vary for now.”
