There’s a likelihood for US Greenback (USD) to retest 144.50 earlier than a extra sustained restoration will be anticipated. Within the longer run, USD seems to have moved into a spread buying and selling part between 143.50 and 146.50, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
USD seems to have moved into a spread buying and selling part
24-HOUR VIEW: “USD rose to 148.02 on Monday after which plunged. Yesterday, when it was at 145.60, we famous that ‘whereas additional declines are usually not dominated out, circumstances are deeply oversold, and a break of the sturdy assist at 145.05 appears unlikely.’ The stronger than anticipated momentum outweighed the oversold circumstances, as USD dropped to 144.49 earlier than recovering to shut decrease by 0.81% at 144.91. Whereas circumstances stay deeply oversold, downward momentum seems to be slowing, albeit tentatively. From right here, there’s a likelihood for USD to retest the 144.50 degree earlier than a extra sustained restoration will be anticipated. A dip beneath this degree is just not dominated out, however based mostly on the present momentum, any additional weak spot is unlikely to succeed in 144.00. On the upside, resistance ranges are at 145.20 and 145.55.”
1-3 WEEKS VIEW: “We have now held a constructive USD view since late final week (see annotations within the chart beneath). After USD rose to 148.02 after which plunged on Monday, we indicated yesterday (24 Jun, spot at 145.60) that ‘so long as 145.05 is just not breached, there’s a slim likelihood for USD to rise to 148.00 once more.’ USD subsequently broke beneath 145.05, because it dropped to a low of 144.49. USD seems to have moved into a spread buying and selling part. In the interim, we count on USD to commerce between 143.50 and 146.50.”
