US Greenback (USD) could retest the 147.20 degree towards Japanese Yen (JPY); a sustained advance above this degree appears unlikely. Within the longer run, renewed momentum has elevated the possibility of additional USD power, nevertheless it should first shut above 147.20 earlier than a transfer to 147.60 is probably going, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Renewed momentum has elevated the possibility of additional USD power
24-HOUR VIEW: “USD rose to a excessive of 147.18 two days in the past after which pulled again sharply. Yesterday, when USD was at 146.20, we highlighted the next: ‘The pullback has scope to increase to 145.60 earlier than stabilisation is probably going. The robust assist at 145.20 is unlikely to return below menace. Resistance is at 146.60, adopted by 146.95.’ Though USD pulled again additional, it rebounded from a low of 145.73. The rebound is gathering momentum, and at present, USD could retest the 147.20 degree. A sustained advance above this degree appears unlikely. Help is at 146.35, adopted by 146.00.”
1-3 WEEKS VIEW: “After holding a optimistic USD outlook since early this week, we identified yesterday (10 Jul, spot at 146.20) that ‘upward momentum seems to be slowing, and if USD breaks under 145.20 (no change in ‘robust assist’ degree), it might imply that 147.18 is the extent of the present USD power.’ USD then dropped to a low of 145.73 earlier than rebounding to shut largely unchanged at 146.25 (-0.04%). Within the early Asian commerce at present, USD rose sharply. The renewed upward momentum has elevated the possibility of additional USD power. Nevertheless, USD should shut above 147.20 earlier than a transfer to 147.60 is probably going. On the draw back, the ‘robust assist’ degree has moved greater to 145.60 from 145.20.”
