The US Dollar (USD) is expected to decline; given that momentum is not strong, any decline is unlikely to break below 146.00. Otherwise, a break of 148.30 would mean that USD weakness has stabilised, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.
The nearest resistance is at 148.30
24-HOUR VIEW: “Yesterday, we noted that ‘there has been no clear increase in bullish or bearish momentum.’ We expected the USD to ‘continue to trade in a range, likely between 146.50 and 148.00.’ Our range-bound trading view was not incorrect as the USD traded in a range of 146.59/147.94, closing marginally lower by 0.25% (146.82). There has been a slight increase in momentum. Today, we expect the USD to turn lower. Since momentum is not strong, any decline is unlikely to break below 146.00 (minor support is at 146.50). Resistance is at 147.55, followed by 148.00.”
1-3 WEEK VIEW: “Our update from two days ago (August 12, pair at 146.90) remains valid. As highlighted, bearish momentum is starting to wane, and a break of 148.30 (no change in the ‘strong resistance’ level) would mean that USD weakness has stabilized.”
Source: Fx Street
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