The US Dollar (USD) could decline further, but it is unlikely to threaten the support at 7.2800. In the longer run, upward momentum has largely dissipated, and USD is expected to trade between 7.2700 and 7.3100 for the time being, UOB Group analysts Quek Ser Leang and Lee Sue Ann note.
USD to trade between 7.2700 and 7.3100
24-HOUR VIEW: “Yesterday, we noted that ‘downward momentum is beginning to build.’ We also indicated that USD ‘could drop to 7.2900 but is unlikely to threaten the next support at 7.2800.’ While USD subsequently dropped, it only reached a low of 7.2917. Downward has increased further, albeit not much. Today, USD could continue to decline, but the support at 7.2800 is still unlikely to come under threat. There is another support at 7.2860. On the upside, if USD breaks above 7.3030 (minor resistance is at 7.2980), it would indicate that USD is not declining further.”
1-3 WEEKS VIEW: “We continue to hold the same view as yesterday (04 Jul, spot at 7.3000). As highlighted, the recent buildup of upward momentum had largely dissipated. The current price movements are likely part of a consolidation. For the time being, we expect USD to trade between 7.2700 and 7.3100.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
How will US Dollar react to June Nonfarm Payrolls data? – LIVE
Markets eagerly await June jobs report, which fill feature Nonfarm Payrolls, Unemployment Rate and wage inflation figures. Growing signs of loosening conditions in the labor market keep optimism for a Federal Reserve rate cut in September alive.
EUR/USD holds higher ground above 1.0800 ahead of US payrolls
EUR/USD is holding higher ground above 1.0800 in the European session on Friday. The pair extends its week-long winning streak amid a broad US Dollar weakness and an upbeat market mood. The further upside hinges on the US Nonfarm Payrolls data release.
GBP/USD rises toward 1.2800 after a landslide Labour victory
GBP/USD extends gains toward 1.2800 in the European session on Friday. The Pound Sterling is underpinned by the landslide Labour Party victory in the UK general election while the US Dollar awaits the Nonfarm Payrolls data for fresh directives.
Gold continues positive run as investors foresee lower interest rates
Gold rises on Friday, continuing its run of positive days as investors become increasingly optimistic the Fed will lower interest rates sooner than previously thought, and the US Dollar softens, adding a lift to Gold which is predominantly bought and sold in Dollars.
Bitcoin faces second largest liquidation event in history, erasing 25% of Base meme coins’ market cap
Bitcoin on-chain data confirms that the current correction represents the second-largest liquidation event in BTC’s history. Base meme coin market capitalization dipped over 25% in the wake of the market-wide decline in crypto prices.