US Dollar (USD) view remains positive; the focus now is at 150.00, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
USD view remains positive
24-HOUR VIEW: “When USD was at 148.35 in the early Asian trade yesterday, we indicated that ‘the price movements are likely part of a consolidation phase.’ We expected USD to ‘trade between 147.85 and 148.75.’ USD subsequently dipped below 147.85 (low of 147.78), it then reversed and soared, reaching a high of 149.53 in the NY session. The sharp rise appears to be excessive, but there is room for USD to test 149.70 before leveling off. Based on the overbought momentum, any further advance above 149.70 is unlikely to break above 150.00 today. Support is at 149.00, followed by 148.65.”
1-3 WEEKS VIEW: “We turned positive on USD early this week. In our most recent narrative from Tuesday (29 Jul, spot at 148.55), we highlighted that the recent price action “indicates that USD could rise toward 149.20.” Our positive view was correct, but we did not expect USD to reach 149.20 as quickly, as it soared to a high of 149.53 yesterday. We maintain our positive view and are now focusing at 150.00. However, if USD breaks below the ‘strong support’ at 148.20 (level was previously at 147.40), it would indicate that it is not rising further.”
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