The US Dollar (USD) is experiencing mild downward pressure, according to UOB Group FX strategists Quek Ser Leang and Peter Chia. They note that while the currency is likely to edge lower, any decline is unlikely to reach July’s low of 7.0636. The near-term target for the USD is set at 7.0636, according to the experts.
In the 24-hour view, the USD was expected to trade in a range between 7.1150 and 7.1450. However, it ended up trading in a range of 7.1259/7.1485 and closed at 7.1460, reflecting a 0.19% increase. The slight increase in momentum could lead to USD edging higher, but any advance is likely limited to a test of 7.1550. Support levels are at 7.1370 and 7.1280 in this scenario.
Looking ahead 1-3 weeks, the experts suggest that as long as the USD remains below 7.1750, it is likely to continue edging lower in the coming days. They note that the recent price action has resulted in an increase in downward momentum, albeit not much. Despite this, any decline is not expected to reach July’s low of 7.0636, given the mild downward pressure.
Overall, the outlook for the USD remains cautiously negative, with potential for further downward movement in the near future. However, the experts do not anticipate a significant drop below July’s low, suggesting that any decline is likely to be limited. The near-term target for the USD is set at 7.0636, indicating a potential decline from current levels.
In conclusion, the US Dollar is facing mild downward pressure, leading to a cautious outlook for the currency. While further decline is likely in the near term, any drop is not expected to reach July’s low of 7.0636. The experts suggest that the USD will continue to edge lower in the coming days, with a target set at 7.0636. Overall, the USD remains in a range-bound pattern with limited potential for significant movement in either direction.
