USD cad recovers further to 145.50 – UOB Group

The US dollar (USD) is expected to trade between 143.00 and 144.20. Longer-term, the sharp advance reinforces the view that the USD could bounce back to 145.50, note UOB Group FX analysts Quek Ser Leang and Peter Chia.

Break above 144.20 to lead to 145.50

24-HOUR VIEW: “Our view for ‘additional USD strength’ did not prove as it traded between 143.16 and 144.45, closing at 143.60. The price movements appear to be part of a range trading stage. Today, we expect the USD to trade between 143.00 and 144.20.”

WEEKS 1-3: “Our update from yesterday (September 23, 144.20) remains valid. As pointed out, the USD’s strong advance last week reinforces our view that the USD could further recover to 145.50. Our view will be invalidated if the USD falls below 141.90 (no change to the ‘strong support’ level).”