Strong resistance moves to 7.1460 – UOB Group

The “strong resistance” level for the US dollar (USD) fell to 7.1460 from 7.1750, note UOB Group FX strategists Quek Ser Leang and Lee Sue Ann.

USD may try to bounce back to 7.1460

24 HOURS: “The USD fell last Friday and continues to fall today. While oversold, the USD could fall further towards 7.0900 before stabilization can be expected. The next support at 7.0636 is unlikely to occur. Resistance levels are at 7.1200 and 7.1300.”

WEEKS 1-3: “Last Thursday (August 22, spot at 7.1300), I pointed out that ‘recent price action has led to an increase in downside momentum, although not by much.’ I added, “as long as the USD stays below 7.1750, it is likely to go lower in the coming days.” However, we noted that “given the mild downward pressure, any downside to the July low of 7.0636 is unlikely.” Last Friday, the USD was down 0.42% (NY close at 7.1163). Bearish momentum has increased sharply, suggesting there is potential for the USD to drop to 7.0636. On the upside, the ‘strong resistance’ level dropped to 7.1460 from 7.1750.”