Enhance in momentum is prone to result in US Greenback (USD) advance, doubtlessly to 7.2130. Within the longer run, for now, USD is prone to commerce in a spread between 7.1800 and seven.2300, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Enhance in momentum is prone to result in USD advance
24-HOUR VIEW: “USD rebounded to 7.1935 two days in the past. Yesterday, we famous that ‘The rebound lacks momentum, and as an alternative of extending additional, USD is prone to commerce between 7.1750 and seven.1950.’ USD subsequently traded in a 7.1860/7.1990 vary. Though USD closed largely unchanged at 7.1928 (+0.01%), it lifted off and surged immediately. The rise in momentum is prone to result in additional advance, doubtlessly to 7.2130. The following resistance at 7.2300 might be out of attain. To take care of the momentum, USD should maintain above 7.1900 (minor help is at 7.1980).”
1-3 WEEKS VIEW: “On Monday (26 Might, spot at 7.1770), we indicated that ‘whereas downward momentum has not elevated considerably, so long as 7.2070 (‘robust resistance’ stage) is just not breached, the bias for USD is on the draw back towards 7.1500. After USD dropped to 7.1626 and rebounded, we indicated yesterday (28 Might, spot at 7.1880) that ‘downward momentum is slowing and a breach of seven.2020 would imply that the downward bias has light.’ USD rose above 7.2020 immediately. For now, we anticipate USD to commerce in a spread, most probably between 7.1800 and seven.2300.”
