Slight improve in momentum is prone to result in US Greenback (USD) buying and selling in a better vary of seven.1800/7.1950. Within the longer run, downward momentum is constructing; for a continued decline, USD should first shut beneath 7.1700, UOB Group’s FX analysts Quek Ser Leang and Peter Chia be aware.
Slight improve in momentum is prone to lead USD to commerce in a better vary
24-HOUR VIEW: “Following final Thursday’s worth actions, we identified on Friday that ‘momentum indicators are turning flat.’ We anticipated USD to ‘commerce in a sideways vary of seven.1750/7.1880.’ USD then traded between 7.1780 and seven.1896.’ This time round, there was a slight improve in upward momentum. That stated, that is prone to result in a better vary of seven.1800/7.1950 as an alternative of a continued advance.”
1-3 WEEKS VIEW: “Our most up-to-date narrative was from final Thursday (14 Aug, spot at 7.1800), wherein ‘downward momentum is constructing, however for a continued decline, USD should first shut beneath 7.1700.’ Apart from a quick dip to a low of seven.1690, USD has not been capable of make a lot headway on the draw back. From right here, if USD breaks above 7.1950 (no change in ‘robust resistance’ degree), it will imply that it’s prone to vary commerce as an alternative of declining.”
