The US Dollar (USD) Expected to Trade in Sideways Range, Potential Break Above 7.1900
The US Dollar (USD) is likely to trade in a sideways range of 7.1620/7.1900, with downward momentum fading, according to UOB Group FX analysts Quek Ser Leang and Peter Chia. The possibility of USD revisiting the 7.0635 support level has diminished.
In the short term, USD is expected to continue trading sideways within a range of 7.1620/7.1900. Last Friday, USD closed largely unchanged at 7.1750 after trading in a range of 7.1639/7.1895.
Looking ahead to the next 1-3 weeks, the analysts maintain a negative USD view from late last month. Although further USD weakness is still a possibility, the strong support near 7.0635 suggests that a break below this level is less likely. The analysts also noted that a breach of 7.2000 would indicate that the weakness has stabilized.
Overall, the USD is expected to trade within a narrow range in the near term, with the potential for a break above 7.1900. Investors should monitor these key levels for potential trading opportunities and adjust their strategies accordingly.
Analysis:
The article discusses the current outlook for the US Dollar (USD) against other currencies, highlighting the potential for the USD to trade in a sideways range with a possible break above 7.1900. This information is important for investors and traders who are looking to make informed decisions about their currency positions. By understanding the key support and resistance levels mentioned in the article, individuals can better assess the risks and opportunities in the currency market and adjust their investment strategies accordingly.