The US Dollar (USD) is expected to trade in a sideways range of 144.50/147.50. The next significant support level is some distance away at 140.80, but it remains to be seen if this level will come into view, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.
USD trades sideways withing a range of 144.50/147.50
24-HOUR VIEW: “Our view for USD to trade in a range yesterday was incorrect. Instead of trading in a range, USD soared to 147.89 then pulled back to close at 146.69 (+1.66%). The pullback in overbought conditions indicates that USD is unlikely to advance further. Today, we expect USD to trade in a sideways range 144.50/147.50.”
1-3 WEEKS VIEW: “In our most recent narrative from Monday (05 Aug, spot at 145.25), we noted that ‘the weakness in USD has not stabilised.’ We pointed out that ‘the next significant support level is some distance away at 140.80, but it remains to be seen if this level will come into view.’ We continue to hold the same view. Overall, the USD weakness is intact as long as 148.30 (no change in ‘strong resistance level) is not breached.”
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