Tentative improve in upward momentum suggests US Greenback (USD) might check 6.9950. Within the longer run, outlook for USD is impartial now; it’s more likely to commerce between 6.9660 and seven.0160, UOB Group’s FX analysts Quek Ser Leang and Peter Chia notice.
Outlook for USD is impartial now
24-HOUR VIEW: “We anticipated USD to ‘commerce in a spread between 6.9720 and 6.9880’ yesterday. Nevertheless, after dipping to a low of 6.9790, USD edged to a excessive of 6.9925. There was a tentative improve in upward momentum, and USD might check the resistance at 6.9950. A break above this stage will not be dominated out, however given the tentative momentum, any additional advance is unlikely to achieve 7.0050. Help ranges are at 6.9850 and 6.9800.”
1-3 WEEKS VIEW: “Our most up-to-date narrative was from Monday (05 Jan, spot at 6.9735), wherein we indicated ‘the sharp decline in USD final month seems to be overextended’. We additionally indicated that ‘though there isn’t a clear signal of stabilization but, deeply oversold circumstances and waning downward momentum, counsel the draw back potential could possibly be restricted to a check of 6.9590’. Yesterday, USD edged to a excessive of 6.9925. Though our ‘sturdy resistance’ stage at 6.9950 has not been breached but, downward momentum has roughly eased. In different phrases, the outlook for USD is impartial now, and we count on it to commerce between 6.9660 and seven.0160.”
