Leading FX analysts Quek Ser Leang and Lee Sue Ann from UOB Group forecast further weakness in the US Dollar (USD) as price action indicates a possible breach of long-term support near 7.0980.
USD Testing Key Support Level at 7.0980
24-HOUR VIEW: Despite an unexpected sharp selloff in USD, the currency remains oversold with a potential for further weakness. However, the immediate support at 7.1100 is expected to hold, with resistance at 7.1650. A breakout above 7.1900 would signal a stabilization of weakness.
1-3 WEEKS VIEW: Recent analysis indicated a growing downward momentum in USD, with a risk of breaking below 7.2037. While a rebound was seen, the currency eventually plunged to a low of 7.1415. The price action suggests continued weakness, but the long-term support at 7.0980 is yet to be confirmed. Strong resistance is now at 7.2200.
Analysis and Implications for Investors
As the USD weakens against major currencies, investors should monitor the key support level at 7.0980 for potential breakdown. A breach of this level could lead to further downside for the USD, impacting currency markets and global trade. Traders may consider adjusting their positions to capitalize on potential market movements.