Additional US Greenback (USD) power just isn’t dominated out, however any advance is probably going half of a better vary of 149.20/150.15. Within the longer run, USD may rise additional to 150.15, with lesser odds of reaching 150.90, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
USD may rise additional to 150.15
24-HOUR VIEW: “Yesterday, we anticipated USD to ‘commerce in a spread between 148.20 and 149.15.’ Nevertheless, as a substitute of buying and selling in a spread, USD surged, reaching a excessive of 149.92. Additional USD power just isn’t dominated out. Nevertheless, with unfavorable divergence forming, mixed with deeply overbought situations, recommend that any advance is probably going half of a better vary of 149.20/150.15.”
1-3 WEEKS VIEW: “After USD rose to a excessive of 148.91 two days in the past, we highlighted yesterday that ‘whereas the renewed upward momentum suggests USD may attain 149.15, it’s presently unclear whether or not it may proceed to rise towards the subsequent main resistance at 149.55.’ We didn’t anticipate USD to then surpass each ranges, because it surged to a excessive of 149.92. The sharp rally over the previous couple of days seems extreme, however with no signal of slowing simply but, USD may rise additional to 150.15, with lesser odds of reaching the foremost resistance at 150.90. To maintain the overbought momentum, USD should maintain above the ‘robust assist’ at 148.50 (degree was at 147.70 yesterday).”
