Rising momentum suggests the US Greenback (USD) is more likely to rise additional, doubtlessly reaching 7.1600. Within the longer run, upward momentum is constructing, however USD should break and stay above 7.1600 earlier than additional sustained beneficial properties are probably, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann be aware.
USD has to interrupt above 7.1600 to remain afloat
24-HOUR VIEW: “Final Friday, we anticipated USD to commerce in a spread between 7.1120 and seven.1380. USD subsequently traded in a 7.1232/7.1375 vary, closing at 7.1346 (+0.15%). In early Asian commerce at the moment, USD rose sharply. The growing momentum recommend USD is more likely to rise additional, doubtlessly reaching 7.1600. To take care of the buildup in momentum, USD should stay above 7.1300 with minor assist at 7.1375.”
1-3 WEEKS VIEW: “We shifted to a impartial stance final Friday (25 Oct, spot at 7.1250), indicating that ‘upward momentum has largely light, and USD is more likely to commerce in a spread, in all probability between 7.0800 and seven.1500.’ USD then closed at 7.1346 nevertheless it rose sharply in Asian commerce at the moment. Whereas upward momentum is constructing, USD should break and stay above 7.1600 earlier than additional sustained beneficial properties are probably. The probability of USD breaking clearly above 7.1600 will stay intact, supplied that 7.1200 will not be breached within the subsequent few days.”
