US Greenback (USD) may rebound additional; overbought circumstances recommend any advance could also be restricted to a check of 148.20. Within the longer run, USD has doubtless moved again right into a range-trading section between 146.50 and 148.80, UOB Group’s FX analysts Quek Ser Leang and Peter Chia word.
USD has doubtless moved into a spread between 146.50 and 148.80
24-HOUR VIEW: “Yesterday, we held the view that USD ‘may drop beneath 146.60,’ however we identified that ‘any additional decline is unlikely to achieve 145.80.’ Our view that USD may decline additional was right, because it dropped to a low of 146.19. Nonetheless, the sharp rebound from the low was shocking — USD soared to a excessive of 147.95 within the NY session. At the moment, USD may rebound additional, however given the overbought circumstances, any advance could also be restricted to a check of 148.20. Assist is at 147.40, adopted by 147.00.”
1-3 WEEKS VIEW: “Though we turned adverse on USD yesterday (14 Aug, spot at 147.00), we acknowledged that ‘it’s unsure for now whether or not USD has sufficient momentum to achieve the numerous assist stage at 145.80.’ We additionally acknowledged that we ‘will keep our adverse view so long as 147.95 (‘sturdy resistance’ stage) is undamaged.’ USD subsequently dropped to a low of 146.19 after which snapped again as much as a excessive of 147.95. Though our ‘sturdy resistance’ stage has not been clearly breached, downward momentum has eased. To place it otherwise, USD has doubtless moved again right into a range-trading section, most likely between 146.50 and 148.80.”
