The present worth actions are doubtless a part of a consolidation part between 147.00 and 148.20. Within the longer run, sharp drop in USD has scope to increase, however any decline could not break beneath 145.80, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Sharp drop in USD has scope to increase
24-HOUR VIEW: “Two days in the past, we anticipated USD to weaken, however we identified that ‘it stays to be seen whether or not it could possibly attain 146.60.’ After USD dropped to a low of 146.85, we indicated yesterday that USD ‘may break beneath 146.60, however the main help at 145.80 is unlikely to become visible.’ The next worth actions didn’t prove as we anticipated. USD dipped briefly to 146.60 after which rebounded to a excessive of 147.83. Regardless of the rebound, there was no clear improve in upward momentum. The present worth actions are doubtless a part of a consolidation part, most likely between 147.00 and 148.20.”
1-3 WEEKS VIEW: “We proceed to carry the identical view as Monday (04 Aug, spot at 147.25). As highlighted, ‘the sharp drop in USD from final Friday has scope to increase, however any decline could not break beneath 145.80.’ We proceed to carry the identical view. General, solely a breach of 149.00 (with no change in ‘sturdy resistance’ degree) would point out that the scope for the sharp drop to increase has pale.”
