US Dollar (USD) is likely to edge lower to 7.1780; any further decline is unlikely to threaten the support at 7.1700. In the longer run, USD is still trading in a range; a narrower range of 7.1700/7.2100 is likely enough to contain the price movements, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
USD is still trading in a range
24-HOUR VIEW: “We indicated yesterday that USD ‘could rise and test 7.2010.’ Our view did not materialise as USD traded in a range of 7.1814/7.1976, closing at 7.1854, down by 0.14%. There has been a slight increase in downward momentum. Today, USD is likely to edge lower to 7.1780, given the mild downward pressure, any further decline is unlikely to threaten the support at 7.1700. On the upside, any recovery is likely to hold below 7.1980 (with minor resistance at 7.1925).”
1-3 WEEKS VIEW: “There is not much to add to our update from Monday (11 Aug, spot at 7.1880). As highlighted while we continue to expect range trading, a narrower range of 7.1700/7.2100 is likely enough to contain the price movements for now.”
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