Bearish momentum targets 7.0636 – UOB Group

The US dollar (USD) is expected to trade in a range between 7.1150 and 7.1450. USD is likely to fall. But given the mild downward pressure, any downside is unlikely to reach the July low of 7.0636, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.

It will probably drop in the coming days

24 HOURS: “Yesterday, the USD traded between 7.1135 and 7.1393, closing at 7.1325 (+0.22%). Despite the higher close, there was no significant momentum build-up. Today, the USD is expected to trade in a range, probably between 7.1150 and 7.1450.”

WEEKS 1-3: “After closing lower for three straight days, the USD closed slightly higher yesterday (7.1325, +0.22%). Recent price action has led to an increase in downside momentum, though not by much. From here, as long as the USD remains below 7.1750, it is likely to decline in the coming days. Given the mild downward pressure, any downside to the July low of 7.0636 is unlikely.”