The current price action is likely part of a range trading phase, probably between 153.60 and 154.70. In the longer run, the US Dollar (USD) is expected to trade in a range, likely between 153.30 and 156.50, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
USD is expected to trade in a range
24-HOUR VIEW: “We expected USD to edge lower to 153.70 yesterday. However, we indicated that ‘the major support at 153.30 is unlikely to come under threat.’ While our view was not wrong, as USD then dropped to 153.53, it rebounded and subsequently traded choppily. The current price action is likely part of a range trading phase, probably between 153.60 and 154.70.”
1-3 WEEKS VIEW: “Our most recent narrative was from last Thursday (21 Nov, spot at 155.25), wherein USD ‘is expected to trade in a range, likely between 153.30 and 156.50.’ There is no change in our view.”
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