The US Dollar (USD) is likely to trade in a range between 7.0990 and 7.1330. In the longer run, momentum is slowing; a breach of 7.0900 would indicate that USD is more likely to trade in a range instead of strengthening further, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
After breaking below 7.0900 USD to stop going up
24-HOUR VIEW: “Our view for USD to trade in a range between 7.1180 and 7.1480 last Friday was incorrect. Instead of trading in a range, USD dropped to a low of 7.1096, closing at 7.1159 (-0.29%). Despite the decline, there has been no clear increase in downward momentum. Today, we continue to expect USD to trade in a range, probably between 7.0990 and 7.1330.”
1-3 WEEKS VIEW: “Our most recent narrative was from last Wednesday (16 Oct, spot at 7.1350), wherein the recent strong and sudden surge suggests further USD strength to 7.1600, potentially 7.1900. We added, ‘To keep the momentum going, USD must not break below the ‘strong support’ level, now at 7.0900.’ After the strong rise, USD has not been able to build on its gain. Momentum is beginning to slow, and a breach of 7.0900 would indicate that USD is more likely to trade in a range instead of strengthening further.”
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