According to UOB Group FX strategists Quek Ser Leang and Lee Sue Ann, the US Dollar (USD) is likely to range trade between 143.90 and 145.10 in the near future. Despite a rebound from 143.43 to 144.65, the longer-term outlook remains under pressure, with a potential target of 141.66, the analysts note.
Analyzing the Short-Term View
24-HOUR VIEW: The analysts expected USD to decline further, potentially reaching 142.80. However, the currency rebounded to 144.65, closing at 144.52. With slowing downward momentum and oversold conditions, USD is likely to range trade between 143.90 and 145.10 in the short term.
Looking at the Longer-Term Perspective
1-3 WEEKS VIEW: Despite being under pressure, the increase in momentum suggests USD could reach 141.66. However, oversold conditions may lead to a few days of range trading before any significant movement. A breach of 146.50 would indicate a relief from the current downward pressure.
Analysis and Implications for Investors
For investors, the current forecast suggests that the US Dollar will likely trade within a specific range in the coming days. Understanding these predictions can help investors make informed decisions about their portfolios and potential currency trades. Keeping an eye on key levels, such as 143.90 and 145.10, can provide valuable insights into potential market movements.