USD Outlook: Potential Rebound with Choppiness Ahead
Analysis of USD Performance
The US Dollar (USD) has shown signs of a potential rebound, with analysts from UOB Group, Quek Ser Leang and Lee Sue Ann, noting a sustained rise above 144.50 as unlikely. Despite this, the longer-term outlook suggests that upward momentum has dissipated, indicating that USD could continue to trade choppily within a range of 140.00 to 146.00.
24-Hour View
- Yesterday’s weakness in USD led to a drop to 141.63 before rebounding to 143.91 in NY trade.
- Momentum has increased, hinting at a potential further rebound to 144.50.
- However, a sustained rise above this level is deemed unlikely, with support levels at 143.30 and 142.80.
1-3 Weeks View
Looking ahead, the recent upward momentum in USD has dissipated, suggesting a choppy trading pattern within a range of 141.00 to 146.00. Despite potential fluctuations, USD is expected to remain within this range.
Understanding the Impact
For those unfamiliar with the financial jargon, the analysis indicates that the US Dollar could experience short-term volatility with a potential rebound to 144.50. However, the overall trend suggests a lack of sustained upward momentum, leading to choppy trading within a specific range. This information can be valuable for investors, as it provides insights into potential price movements and helps in making informed decisions regarding currency investments.