Title: USD Faces Sharp Drop with Potential Extension – UOB Group FX Analysts
In a recent analysis by UOB Group FX analysts Quek Ser Leang and Lee Sue Ann, it has been observed that the USD has experienced a sharp drop and may have the potential to extend further. Despite the recent decline, the currency is likely to remain within a lower trading range of 150.50/155.00.
24-Hour View: The USD has been trading in a volatile manner, with a rise to 155.21 followed by a plunge to 152.64. While there is potential for further decline, it is important to note that conditions are approaching oversold levels. Major support levels are identified at 151.30 and 151.90, with resistance levels at 153.20 and 153.80.
1-3 Weeks View: The USD has been showing signs of weakening since the middle of the month. Despite a brief rise to 155.21, the currency has experienced a sharp drop. While downward momentum is building, it is not significant enough to indicate a sustained drop below 150.50. The analysts suggest that any decline is likely part of a lower trading range between 150.50 and 155.00.
Analysis: The recent sharp drop in the USD has the potential to extend further, with key support and resistance levels identified by UOB Group FX analysts. While the currency may continue to weaken in the short term, it is unlikely to sustain a drop below 150.50 for now. Investors and traders should closely monitor these levels to make informed decisions regarding their investments and trading strategies.