The US Dollar (USD) is anticipated to inch higher, yet any substantial rise is not expected to surpass the 161.80 mark, according to UOB Group FX strategists Quek Ser Leang and Peter Chia. The recent period of USD strength appears to have plateaued, leading to a likely trading range between 159.40 and 161.80.
All Eyes on 161.80
24-Hour View:
“Our expectation for the USD to trade sideways between 160.30 and 161.30 yesterday proved incorrect as the USD climbed to a high of 161.51, closing at 161.31 (+0.31%). Momentum has slightly increased, suggesting that the USD may edge higher today. However, it is unlikely to breach the significant resistance at 161.80. Should the USD fall below 160.70 (with minor support at 161.00), it would indicate that the mild upward pressure has dissipated.”
1-3 Weeks View:
“Our update from Monday (08 Jul, spot at 160.65) remains valid. As highlighted, the USD’s strength from mid-last month has concluded, with current price movements likely representing a range-trading phase. The USD is expected to fluctuate between 159.40 and 161.80 for the time being.”
The overall outlook suggests that while there may be minor upward movements, the USD will likely remain within the specified range, awaiting further catalysts to define its direction.
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