Title: USD Likely to Trade Sideways with Diminished Downward Momentum – Expert Analysis
The US Dollar (USD) is expected to trade within a range of 7.1700/7.1880 as downward momentum fades, according to UOB Group FX strategists Quek Ser Leang and Peter Chia. The likelihood of USD revisiting the 7.0635 support level has diminished.
In the short term, a move below 7.1700 is possible, with USD trading sideways in a range of 7.1700/7.1880. The recent price action provides no fresh clues, indicating continued sideways movement.
Over the next 1-3 weeks, the negative USD view remains unchanged since late last month. Despite a sharp fall to 7.0636 and subsequent rebound, the support near 7.0635 is now solid. While further weakness is not ruled out, a breach of 7.2000 would indicate stabilized weakness. The recent sideways trading suggests that downward momentum is fading, reducing the likelihood of USD breaking below 7.0635.
In conclusion, the USD is expected to continue trading sideways with diminished downward momentum. It is important to monitor the support levels and potential breaches to gauge the future direction of the USD. Stay informed and make informed decisions to protect your finances and investments.