The US Dollar (USD) is likely to trade with a bearish bias; any decline is considered part of a lower range of 155.80/157.00. Longer term, the rapid increase in momentum indicates further USD weakness, with a technical target at 154.90, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.
Rapid increase in momentum indicates further USD weakness
24-HOUR VIEW: “The sharp drop in the USD that saw it crash to 155.93 was surprising (we expected a range-bound trade). The rapid and abrupt selling appears to be excessive. However, the weakness does not appear to have stabilized yet, and is It is premature to expect stabilization. Overall, the USD is more likely to trade with a bearish bias today. However, any weakness is considered part of a lower range. 155.80/157.00. Put another way, a sustained decline below 155.80 is unlikely today.”
1-3 WEEK VIEW: “We indicated two days ago (January 14, spot at 157.50) that ‘the current price movements are likely part of a consolidation phase, expected between 156.50 and 158.50.’ Yesterday, the USD decisively broke below 156.50, reaching a low of 155.93. The rapid increase in momentum indicates further USD weakness. The technical target is near 154.90. To sustain the rapid increase in momentum, the USD must remain above. below the ‘strong resistance’ level, currently at 157.60.”
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.
