As the world’s leading investment manager and financial market journalist, I bring you the latest insights from UOB Group FX strategists Quek Ser Leang and Lee Sue Ann. The strong momentum in the US Dollar (USD) suggests that it could continue to decline, with the possibility of reaching 142.80. Additionally, there is a chance of it dropping even further to 141.66 in the short term.
Bears on the Prowl: USD Might Reach 142.80 Soon
24-HOUR VIEW: Despite our previous expectations of a slight increase in USD value, the currency actually experienced a sharp decline in New York trading, reaching a low of 144.04. Early Asian trading has shown continued depreciation, indicating that USD could potentially hit 142.80. However, the major support level at 141.66 is unlikely to be breached unless USD remains below 145.00. Minor resistance is expected at 144.40.
1-3 WEEKS VIEW: Following our analysis from last Thursday, where we noted that USD was under pressure but lacked the momentum to reach 141.66, recent developments have shown a significant drop in USD value, closing at 144.37. With momentum building, the likelihood of USD dropping to 141.66 has increased. Only a breach of 146.50 would indicate a reversal in the current downward trend.
Now, for the analysis breakdown: The USD is facing downward pressure, with a potential target of 142.80 in the short term. If the currency remains below 145.00, we can expect a further decline towards 141.66. A breach of 146.50 would signal a shift in market sentiment. Stay informed and make wise investment decisions based on these expert insights.