As the world’s best investment manager, I am here to provide you with exclusive insights into the future of the US Dollar (USD) against other major currencies. According to UOB Group FX strategists Quek Ser Leang and Lee Sue Ann, the USD is currently trading in a range of 7.1100 to 7.1700, with a possibility of further weakness. However, the recent low near 7.0635 is now seen as a strong support level.
Mid-Term Outlook: Testing 7.1700
Looking at the 24-hour view, we saw a significant drop in the USD, followed by a quick rebound to close at 7.1350. This rebound from oversold conditions indicates a potential trading range of 7.1100 to 7.1700 in the near term.
For the 1-3 weeks view, we have maintained a negative stance on the USD since last month. Despite the recent drop below 7.0980, the USD could continue to weaken unless it breaks above the strong resistance level at 7.2000. The current support level at 7.0635 is expected to hold for now, but further weakness is still possible.
Analysis: The USD is facing a crucial juncture as it navigates between support at 7.0635 and resistance at 7.1700. Investors should closely monitor these levels to assess the future direction of the USD against other currencies. Whether you are a seasoned investor or a novice in the financial markets, understanding these key levels can help you make informed decisions and potentially capitalize on the fluctuations in the currency markets.