USD has scope to extend above 145.00 – UOB Group

US dollar (USD) advance extends above 145.00; major resistance at 145.50 is probably impossible for now. In the longer term, the sharp advance reinforces the view that the USD could further recover to 145.50, note UOB Group FX strategists Quek Ser Leang and Lee Sue Ann.

USD may further recover to 145.50

24 HOUR OUTLOOK: “We indicated yesterday that “price action still appears to be part of a range-trading phase, even though it is likely to trade in a lower range of 142.30/144.10 today “. However, after falling to 142.89, the USD rallied to a 3-week high of 144.84. The advance may extend above 145.00 today. Major resistance at 145.50 is probably unreachable for now. To keep the upside on pace, the USD needs to stay above 144.00 with minor support at 144.35.”

WEEKS 1-3: “In our most recent narrative three days ago (September 23 at 144.20), we pointed out that “the USD’s strong advance last week reinforces our view that the USD could bounce back to 145, 50”. We will continue to hold the same view, provided 142.30 (the previous “strong support” level at 141.90) is not breached. Looking ahead, the next level to watch above 145.50 is 147.00.”