Likely to trade between 7.0530 and 7.0930 – UOB Group

The US dollar (USD) could continue to trade in a range, probably between 7.0530 and 7.0930. In the longer term, current price movements are likely part of a range trading phase; The USD is likely to trade between 7.0300 and 7.1200, note UOB Group Quek Ser Leang and Peter Chia.

USD could drop towards 7.0530

24 HOURS: “We expected the USD to trade in a range of 7.0590/7.0800 yesterday. While the USD traded in a wider range between 7.0466 and 7.0846, it closed little changed at 7.0745 (+0.03%). There has been no increase in bullish or bearish momentum and the USD may continue to trade in a range today, likely between 7.0530 and 7.0930.”

WEEKS 1-3: “After the USD rallied last Friday, we indicated on Monday (Oct 07, spot at 7.0900) that “while a further USD rally is not out of the question, it remains to be seen whether it can maintain the rapid pace of advance. .’ I also indicated that “the level to monitor is 7.1200 and to maintain the rapid increase in momentum, the USD must not fall below 7.0500”. Yesterday (Tuesday), the USD slipped below 7.0500 as it fell to a low of 7.0466. The momentum build up is gone. The current price movements are probably part of a range trading phase. For now, the USD is expected to trade between 7.0300 and 7.1200.”