Bias for US Dollar (USD) is tilted to the downside, but the major support at 147.20 is unlikely to come under threat (there is another support level at 147.50). In the longer run, USD is likely to trade in a range, probably between 147.20 and 149.20, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
USD is likely to trade in a range
24-HOUR VIEW: “Our view for USD to ‘rise and test 148.75’ yesterday was incorrect. After rising to a high of 148.52, USD dropped quickly, reaching a low of 147.56. The price action did not result in a clear increase in downward momentum. However, the bias for today is tilted to the downside, even though we do not expect the major support at 147.20 to come under threat. Note that there is another support level at 147.50. Resistance levels are at 148.05 and 148.25.”
1-3 WEEKS VIEW: “Yesterday (12 Aug, spot at 148.25), we revised our view from negative to neutral. We stated that USD ‘is likely to trade in a range, probably between 147.20 and 149.20.’ There is no change in our view.”
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