There’s scope for US Greenback (USD) to check 7.1500 earlier than a pullback may be anticipated; 7.1600 is unlikely to become visible. Within the longer run, upward momentum continues to extend; if USD breaks above 7.1500, the subsequent ‘degree to observe is 7.1600, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Upward momentum continues to extend
24-HOUR VIEW: “USD soared to a excessive of seven.1400 on Wednesday. Yesterday, Thursday, when USD was at 7.1340, we acknowledged that ‘whereas the sharp rise seems to be overdone, there may be scope for USD to check 7.1420 earlier than the chance of a pullback will increase.’ We identified that ‘we don’t count on the main resistance at 7.1500 to become visible at the moment.’ USD subsequently soared, however didn’t attain 7.1500 (excessive was 7.1480). Not surprisingly, situations are overbought after the sharp advance over the previous couple of days. Nevertheless, this time round, there may be scope for USD to check 7.1500 earlier than a pullback may be anticipated. Based mostly on the overbought momentum, the subsequent main resistance at 7.1600 is unlikely to become visible. Assist ranges are at 7.1380 and seven.1330.”
1-3 WEEKS VIEW: “On Monday (22 Sep, spot at 7.1185), we highlighted that USD ‘seems to have entered a consolidation section, however given the marginally firmer underlying tone, it’s prone to take a look at the highest of the anticipated 7.1000/7.1360 vary first.’ After USD soared to a excessive of seven.1400, we highlighted yesterday (25 Sep, spot at 7.1340) that ‘whereas the growing upward momentum may result in additional advances in USD, it’s value noting that 7.1500 is a major resistance degree.’ USD subsequently rose to a excessive of seven.1480. Upward momentum continues to extend, and if USD breaks above 7.1500, the subsequent degree to observe is 7.1600. On the draw back, a breach of seven.1250 (‘robust help’ degree was at 7.1150 yesterday) would imply that USD is just not rising additional.”
