The US Dollar (USD) could rebound further; a sustained rise above 144.50 is unlikely. In the longer run, upward momentum has dissipated; USD could continue to trade choppily but is likely to stay within a 140.00/146.00 range, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.
USD to continue to trade choppily
24-HOUR VIEW: “Yesterday, we indicated that ‘the weakness in USD could retest the 142.00 level before stabilisation is likely.’ We also indicated that ‘a sustained decline below 142.00 is unlikely.’ USD then dropped to 141.63 before rebounding strongly, reaching a high of 143.91 in NY trade. There has been an increase in momentum, and USD could rebound further to 144.50. Today, a sustained rise above this level is unlikely. Support levels are at 143.30 and 142.80.”
1-3 WEEKS VIEW: “Our update from yesterday (30 Sep, spot at 142.60) remains valid. As highlighted, the recent buildup in upward momentum has dissipated. From here, USD could continue to trade in a choppy manner, but it is expected to stay within a range of 141.00/146.00 range.”
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