USD is expected to edge lower; the major support level at 7.2100 is unlikely to come under threat. In the longer run, current price movements are likely part of a 7.2100/7.2800 consolidation range, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
USD is expected to edge lower
24-HOUR VIEW: “We noted ‘a slight increase in upward momentum last Friday,’ and we expected USD to ‘edge higher.’ However, we pointed out, ‘any advance is unlikely to reach 7.2650.’ Our view did not materialise as USD traded between 7.2312 and 7.2541. From here, there has been a slight increase in downward momentum, and we expect USD to edge lower. However, the major support at 7.2100 is unlikely to come under threat (there is another support level at 7.2200). On the upside, resistance levels are at 7.2400 and 7.2460.”
1-3 WEEKS VIEW: “Last Friday, 14 Mar, when USD was at 7.2490, we revised our view to neutral. We indicated that ‘the current price movements are likely part of a 7.2100/7.2800 consolidation range.’ We continue to hold the same view.”
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