The sharp decline in the USD has room to extend. Any decline is likely to be part of a lower trading range of 150.50/155.00, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.
Bears will break below 150.50
24-HOUR VIEW: “Our view that the USD would trade in a range was incorrect. The USD traded volatilely, rising to 155.21 before falling to a low of 152.64. The sharp decline from the high has room to extend, but with conditions now nearing oversold levels, it remains to be determined whether any further decline can reach the major support at 151.30 (there is another support level at 151.90). Resistance levels are at 153.20 and 153.80.”
1-3 WEEK VIEW: “We have been expecting the USD to weaken since mid-month. In our most recent narrative last Friday (July 26, spot at 153.50), we highlighted that ‘USD weakness appears to be stabilising.’ We added, ‘A break of 155.00 would signal that the USD is not declining any further.’ Yesterday, the USD briefly rose to 155.21 and then plunged. Bearish momentum is building again, although not significantly. From here, while there is room for the USD to weaken, we maintain the view that any decline is likely to be part of a lower trading range of 150.50/155.00. In other words, a sustained drop below 150.50 seems unlikely for now.”
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.
