USD is more likely to commerce in a sideways vary of 145.70/147.50. Within the longer run, upward momentum has dissipated; USD is predicted to consolidate in a variety of 144.50/148.50 for now, UOB Group’s FX analysts Quek Ser Leang and Peter Chia observe.
Upward momentum has dissipated
24-HOUR VIEW: “When USD was at 147.60 in early Asian commerce yesterday, we famous that ‘The worth actions nonetheless look like a part of a variety buying and selling section.’ We anticipated USD to ‘commerce between 146.70 and 148.20.’ The sudden surge in volatility was shocking, as USD plunged to 145.58. Nonetheless, the decline was not sustained, as USD staged and swift rebound. Downward momentum has barely elevated with the transient decline. At present, as a substitute of constant to weaken, USD is extra more likely to commerce in a sideways vary of 145.70/147.50.”
1-3 WEEKS VIEW: “We’ve considered USD positively since late final week. In our most up-to-date narrative from two days in the past (13 Might, spot at 147.90), we anticipated ‘additional USD power.’ Nonetheless, we indicated that ‘deeply overbought circumstances may lead to a couple days of vary buying and selling first.’ We additionally indicated that ‘We are going to proceed to carry the identical view so long as 146.00 (‘robust assist’ degree) shouldn’t be breached.’ Yesterday, in a shocking transfer, USD plummeted to 145.58. Upward momentum has dissipated with the breach of our ‘robust assist’ degree. USD has doubtless entered a consolidation section, and we anticipate it to commerce in a variety of 144.50/148.50 for now.”
