US Greenback (USD) is anticipated to strengthen; the numerous resistance at 147.50 is unlikely to return beneath menace. Within the longer run, worth motion suggests additional USD upside; too early to inform whether or not 147.50 is inside attain, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Worth motion suggests additional USD upside
24-HOUR VIEW: “Following the sharp rally in USD two days in the past, we indicated the next yesterday: ‘Whereas robust momentum might result in additional USD power, deeply overbought situations counsel any advance is probably going restricted to a take a look at of 144.80. The foremost resistance at 145.30 is unlikely to return beneath menace.’ USD rose greater than anticipated, reaching a excessive of 145.07. Right now, shortly after opening, USD surged. We proceed to anticipate USD to strengthen, however this time round, the numerous resistance at 147.50 is unlikely to return beneath menace. There’s one other resistance at 146.80. On the draw back, any pullback is more likely to stay above 144.90, with minor assist at 145.40.”
1-3 WEEKS VIEW: “After anticipating a weaker USD for every week, we revised our view to impartial yesterday (28 Could, spot at 144.00). We indicated that ‘the weeklong USD weak point has stabilised.’ We additionally indicated that ‘although there may be room for USD to rise additional, any advance is probably going a part of 142.70/145.30 vary.’ USD subsequently rose to 145.07. Right now, USD surged above 145.30. Though the value motion suggests additional USD upside, it’s too early to inform whether or not 147.50 is inside attain. To maintain the momentum, USD should stay above the ‘robust assist’ stage, now at 144.50.”
