Rather than further advance, the USD is more likely to trade between 7.1450 and 7.1900, but further USD weakness is not ruled out. Although, the low near 7.0635 is a solid support now, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.
The low of 7.1450 is likely to be broken
24-HOUR VIEW: “We expected the USD to rise yesterday, but were of the view that ‘any advance is unlikely to clearly break above 7.1800.’ Subsequently, the USD rose further than expected, reaching a high of 7.1935 before pulling back sharply. The advance did not result in a significant increase in momentum. Today, instead of further advance, the USD is more likely to trade between 7.1450 and 7.1900.”
1-3 WEEK VIEW: “After the USD plunged to 7.0636 on Monday and then bounced, we indicated on Tuesday (Aug 6, pair at 7.1400) that ‘although bearish momentum has slowed somewhat, only a break of 7.2000 (with no change in the ‘strong resistance’ level) would mean that weakness has stabilised.’ We added, ‘until then, further USD weakness is not ruled out, but the low near 7.0635 is solid support now.’ Our view remains the same.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
