US Greenback (USD) might decline additional; given the deeply oversold momentum towards Japanese Yen (JPY), a transparent break under 142.10 seems unlikely. Within the longer run, for a sustained decline, USD should first shut under 142.10, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
USD should first shut under 142.10 to say no additional
24-HOUR VIEW: “Though we famous yesterday that ‘downward momentum has elevated barely’, we indicated that ‘somewhat than a sustained decline, USD is extra prone to commerce in a decrease vary of 143.25/144.30.’ The sudden downward acceleration that despatched USD plunging to 142.52 was stunning. The sharp and swift selloff seems to be overextended. Nevertheless, with no indicators of stabilisation simply but, USD might decline additional. Given the deeply oversold momentum, a transparent break under 142.10 seems unlikely. On the upside, ought to USD break above 143.30 (minor resistance is at 143.00), it might be a sign that the weak spot is stabilising.”
1-3 WEEKS VIEW: “Final Friday (30 Could, spot at 143.95), we indicated that ‘after the wild swings, the outlook for USD is unclear.’ We added, ‘In the meanwhile, USD might commerce inside final week’s wide selection, between 142.10 and 146.30.’ Yesterday, USD plunged to 142.52. The rise in downward momentum will not be sufficient to point a sustained decline. USD should break and maintain under 142.10 earlier than additional declines might be anticipated. The probability of USD breaking clearly under 142.10 will stay intact so long as 143.85 will not be breached within the subsequent few days.”
