Leading FX strategists Quek Ser Leang and Peter Chia from UOB Group predict a potential break above the key resistance level of 7.1330 for the US Dollar (USD). While there has been a notable increase in momentum, a sustained rise above 7.1350 is crucial for further bullish movement.
Short-Term Outlook
According to the 24-hour view, USD closed at 7.1220 with a positive gain of 0.35%, surpassing expectations by reaching 7.1250. The uptrend is expected to continue, with a possibility of breaking above 7.1330. However, a sustained rise above this level may face challenges in the near term. Support levels are identified at 7.1140 and 7.1000.
Medium-Term Forecast
Over the next 1-3 weeks, USD is projected to trade within a range of 7.0650 and 7.1350. While there is an uptick in momentum, a clear breakthrough above 7.1350 is necessary for a sustained bullish trend. The likelihood of surpassing this level is high, with the next resistance noted at 7.1700.
Analysis and Implications
For investors and traders, keeping a close watch on USD’s movement against the major resistance levels can help in making informed decisions. A break above 7.1330 could signal further bullish momentum, while a sustained rise above 7.1350 would confirm a long-term upward trend. It’s essential to monitor support levels and overall market conditions to navigate potential risks and opportunities in the forex market.