Momentum indicators are turning flat; US Dollar (USD) is likely to trade sideways between 146.70 and 147.50. In the longer run, outlook is mixed; USD could trade in a range between 146.40 and 148.40, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Momentum indicators are turning flat
24-HOUR VIEW: “Our expectation for USD to ‘edge lower’ last Friday did not materialise, as it traded in a range of 146.73/147.40 and then closed largely unchanged at 147.02 (+0.07%). Momentum indicators are turning flat, and today, we expect USD to trade sideways, most likely between 146.70 and 147.50.”
1-3 WEEKS VIEW: “Our most recent narrative was from last Monday (25 Aug, spot at 147.35), in which we highlighted that ‘the recent sharp price swings, which failed to result in a sustained directional move, have led to a mixed outlook for USD.’ We expected USD to ‘trade in a range between 146.40 and 148.40.’ We continue to hold the same view.”
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