The US Dollar (USD) is likely to trade in a range between 155.00 and 156.00. In the long term, despite no increase in bearish momentum, there is a possibility of the USD falling further to 154.40, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.
USD to fall further to 154.40
24-HOUR VIEW: “In yesterday’s early Asian trading, we noted that ‘bearish momentum is increasing.’ We highlight that the USD ‘could break below 154.90, but the next major support at 154.40 is probably out of reach for now.’ We note that ‘resistance levels are at 155.75 and 156.25.’ Our view was not wrong, as USD/JPY rose to 156.20 and then plunged to a low of 154.76. USD bounced off the low before closing virtually unchanged at 155.50 (-0.06%). suggests that the downward pressure is easing instead of weakening, today, the USD is more likely to trade in a range between 155.00 and 156.00.”
1-3 WEEK VIEW: “In our most recent narrative from last Friday (Jan 17, spot at 156.20), we indicated that the USD ‘remains weak.’ We also indicated that ‘if it breaks below 154.90, the next target will be 154.40.’ Yesterday, USD fell below 154.90, bouncing from a low of 154.76 Despite no increase in bearish momentum, there is a possibility of USD falling further to 154.40 Overall, only a break of 156.50. (‘strong resistance’ previously at 156.70) would mean the USD is not weakening further.”
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.
