Likely to fall below 7.1750 – UOB Group

The US dollar (USD) is likely to fall; Given the mild downward pressure, any downside to the July low of 7.0636 is unlikely, note UOB Group FX strategists Quek Ser Leang and Peter Chia.

The short-term target is 7.0636

24 HOURS: “We expected the USD to trade between 7.1150 and 7.1450 yesterday. However, the USD traded in a range of 7.1259/7.1485, closing at 7.1460 (+0.19%). The slight build in momentum could see the USD higher today, but any advance is likely limited to a test of 7.1550. Support levels are at 7.1370 and 7.1280.”

WEEKS 1-3: “Our update from yesterday (August 22, 7.1300) remains valid. As pointed out, “recent price action has led to an increase in downside momentum, albeit not by much.” 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.”