Momentum indicators are turning flat; US Greenback (USD) is anticipated to commerce in a sideways vary of seven.1750/7.1880. Within the longer run, downward momentum is constructing; for a continued decline, USD should first shut beneath 7.1700, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Downward momentum is constructing
24-HOUR VIEW: “When USD was at 7.1800 within the early Asian commerce yesterday, we indicated that ‘there’s a likelihood for USD to check 7.1700, however based mostly on the present momentum, a transparent break beneath this stage is unlikely.’ Though USD fell greater than anticipated to 7.1690, it rebounded to shut largely unchanged at 7.1810 (-0.02%). Momentum indicators are turning flat, and we count on USD to commerce in a sideways vary of seven.1750/7.1880 immediately.”
1-3 WEEKS VIEW: “We’ve anticipated USD to commerce in a spread since early this month. Yesterday (14 Aug, spot at 7.1800), we famous that ‘downward momentum is constructing.’ Nevertheless, we identified that “for a continued decline, USD should first shut beneath 7.1700.” USD subsequently dipped to a low of seven.1690 earlier than rebounding to shut at 7.1810 (-0.02%). There was no additional enhance in downward momentum, however we are going to preserve our view so long as 7.1950 (no change in ‘sturdy resistance’ stage) isn’t breached.”
