Leading FX analysts Quek Ser Leang and Peter Chia from UOB Group have indicated that the US Dollar (USD) may experience a downward trend in the near future. While there is a possibility of the USD breaking below the significant support level at 140.80, the analysts believe that the likelihood of this happening is not high.
Analysis of USD Movement
24-Hour View: The USD was expected to trade within a range of 142.40 to 144.00, but closed at 142.43 (-0.53%) after trading between 142.18 and 143.71. While downward momentum is starting to build, it is not strong enough to indicate a sustained decline. If the minor resistance at 143.30 (with a support at 142.70) is not breached, the USD is expected to move lower, possibly breaking below July’s low of 141.66. However, the significant support level at 140.80 is unlikely to be threatened.
1-3 Weeks View: The analysts maintain their previous forecast of a downward bias for the USD. Despite the potential for downward movement, the probability of the USD breaking the significant support level at 140.80 is considered low. To sustain momentum, the USD must avoid breaching the strong resistance at 144.00.
Impact on Investors
For investors and individuals involved in forex trading, the forecast of a potential downward trend for the USD highlights the importance of monitoring market trends and key support levels. Understanding the analysis provided by experts can help investors make informed decisions about their financial strategies and positions in the market. It is advisable to stay updated on market developments and adjust investment plans accordingly to mitigate risks and capitalize on opportunities.