The US Dollar (USD) continues to show strength, with the potential to test resistance at 162.00 before a pullback becomes more likely, according to FX strategists at UOB Group. If the USD breaks above 162.00, the next level to monitor is 163.00. The support level has moved up to 160.30 from 159.80, indicating a bullish outlook for the USD in the near term.
In the short-term view, the USD is expected to maintain an upward bias, with a possibility of testing the resistance at 162.00, as long as it remains above 161.00. Conditions are currently overbought, but a break above 162.00 could lead to further gains. However, a sustained break above this level is not expected in the immediate future.
Looking ahead in the 1-3 week view, the USD has been on a positive trajectory since last month. With conditions remaining oversold, the USD is likely to continue rising as long as it stays above 159.80. The next resistance level above 161.50 is 162.00, which was surpassed recently as the USD reached a high of 161.73. If the USD manages to break above 162.00, the next target to watch is 163.00. On the downside, the strong support level has been revised to 160.30.
Overall, the USD is showing signs of strength and potential for further gains, with resistance levels at 162.00 and 163.00 to monitor in the near future. Despite being overbought in the short-term, as long as it remains above key support levels, the USD is expected to maintain its positive momentum. Traders and investors should keep an eye on these levels to gauge the USD’s performance in the coming weeks.
