Over the past couple of days, the US Dollar (USD) has experienced a decline in value. Analysts from UOB Group FX, Quek Ser Leang and Lee Sue Ann, have noted that the sharp selloff in the USD has resulted in a strong increase in momentum. This decline has led to speculation on whether or not the USD will continue to drop in the future. The analysts suggest that if the USD does not breach the minor resistance level at 7.1130, it could continue to decline. However, the likelihood of the USD dropping to 7.0636, its low earlier this month, is not high.
Looking ahead to the next 1-3 weeks, the analysts believe that there is potential for the USD to decline even further. They previously indicated that there is a possibility for the USD to drop to July’s low of 7.0636. However, with the recent boost in momentum, there is an increased chance of the USD potentially breaking below this level and reaching 7.0400. On the upside, there is a strong resistance level at 7.1350 that traders should keep an eye on. This level has moved lower from the initial resistance level of 7.1460, indicating a potential shift in market sentiment.
The current 24-hour view suggests that if the USD does not breach the minor resistance level at 7.1130, it could continue to decline. The analysts were initially expecting sideways trading, but the sharp selloff in the USD caught them by surprise. Despite this unexpected decline, the strong increase in momentum has led to speculation on the future direction of the USD. While the likelihood of the USD dropping to 7.0636 is not high, there is another support level at 7.0770 that traders should be aware of.
In the longer run, the analysts believe that the boost in momentum has increased the chance of the USD dropping to and potentially breaking below 7.0636. This suggests that there is a bearish sentiment surrounding the USD in the near future. Traders should keep a close eye on the support levels and resistance levels mentioned by the analysts to gauge the potential movement of the USD in the coming weeks. With the potential for the USD to reach 7.0400 on the downside, traders should be cautious and monitor the market closely for any updates or changes in the current trend.
Overall, the USD has experienced a decline in value over the past few days, leading analysts to speculate on its future direction. With a strong increase in momentum, there is a possibility of the USD dropping to 7.0636 and potentially breaking below this level. Traders should pay close attention to the support levels and resistance levels mentioned by the analysts to determine the potential movement of the USD in the coming weeks. As the market sentiment shifts, it is important for traders to stay informed and adapt their trading strategies accordingly.
