The US Dollar (USD) could continue its rebound; There does not appear to be enough momentum for it to threaten the resistance at 7.0350. Longer-term, bearish momentum is starting to slow; If the USD breaks 7.0350, it would suggest it could trade in a range for a period, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.
Bearish momentum is starting to slow
24 HOURS VIEW: “We expected the USD to go down yesterday. We were wrong, as instead of going down, the USD bounced strongly to 7.0120. The strong bounce has resulted in increased momentum. Today, the USD could continue its bounce, but “Does not seem to have enough momentum to threaten the strong resistance at 7.0350. Note that there is another resistance level at 7.0240. Support is at 6.9980, a break of 6.9850 would indicate that the current bullish pressure has eased.”
1-3 WEEK VIEW: “We have maintained a negative view on the USD for over a week (as noted in the chart below). In our most recent narrative from last Friday (September 27, pair at 6.9810), we indicated that ‘recent price action continues to suggest USD weakness, although likely at a slower pace.’ We added, ‘the levels to monitor are 6.9400 and 6.9200, and a break of 7.0350 (‘strong resistance’ level) would mean the USD is not weakening further.’ “The USD has not been able to advance further down. The bearish momentum is starting to slow, and if it breaks 7.0350 (no change in ‘strong resistance’ level), it would suggest that it could trade in a range for a period.”
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.
