The US Dollar (USD) is under pressure, but it does not appear to have sufficient momentum to threaten 141.66, the low registered early this month, UOB Group FX strategists Quek Ser Leang and Peter Chia note.
USD has a small chance to fall towards 141.66 near term
24-HOUR VIEW: “Two days ago, USD traded between 144.44 and 146.59, closing largely unchanged at 145.26 (+0.01%). Yesterday, we indicated that we ‘are not able to glean much out of the price action,’ and we expected USD to trade in a range between 144.40 and 146.50. USD subsequently traded in a 144.84/146.52 range, closing on a firm note at 146.26 (+0.69%). The price movements have resulted in a slight increase in upward momentum. Today, we expect USD to edge higher, but advance is unlikely to break above 147.10. Support levels are at 145.80 and 145.25.”
1-3 WEEKS VIEW: “We continue to hold the same view as yesterday (22 Aug, spot at 145.25). As highlighted, while USD is under pressure, it does appear to have sufficient momentum to threaten 141.66, the low registered early this month. Note that there is another support level at 144.00. On the upside, should USD break above 148.00, it would indicate that the current downward pressure has faded.”
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