The US Dollar (USD) is anticipated to trade within a narrow range of 7.1150 to 7.1350 in the short term. However, experts suggest that there is a strong likelihood for the USD to decrease to 7.0636 in the longer term, as downward momentum gains traction. This analysis comes from renowned FX strategists Quek Ser Leang and Lee Sue Ann at UOB Group.
Expert Insights on USD Movement
24-HOUR VIEW: According to the experts, despite initial expectations of a drop to 7.0900, the USD only saw a slight decline before rebounding to 7.1251. The closing price was at 7.1239, showing a modest increase of 0.11%. The downward pressure seems to have eased, leading to a sideways trading pattern between 7.1150 and 7.1350 for the USD today.
1-3 WEEKS VIEW: Following a recent fall in the USD, experts indicated that the downward momentum has significantly strengthened, indicating a potential decline to 7.0636, the low seen in July. Although the USD has not experienced further downward movement yet, the experts maintain their bearish outlook. A break above 7.1460 would signal a shift in this trend.
Analysis and Implications for Investors
For investors and individuals involved in forex trading, the analysis suggests a bearish outlook for the USD in the long term. The anticipated decline towards 7.0636 could present trading opportunities for those looking to capitalize on the weakening USD. It is essential to monitor key support and resistance levels, such as 7.1150 and 7.1350, to gauge the USD’s future movements accurately.