7.0636 is not available at the moment – ​​UOB Group

Provided 7.1130 is not breached, the US Dollar (USD) could continue to decline; the probability of it reaching 7.0636 is not high. In the longer term, the increase in momentum has increased the chance of the USD falling to and potentially below 7.0636, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.

The USD continues to fall

24-HOUR VIEW: “Sudden sell-off in USD that sent it down 0.52% (NY close at 7.0943) was surprising (we expected sideways trading). What is not surprising is that the decline led to a strong increase in momentum. Today, provided 7.1130 (minor resistance at 7.1010) is not breached, the USD could continue to decline. That said, the likelihood of it reaching 7.0636, the low seen earlier this month, is not high. There is another support level at 7.0770.”

WEEKS 1-3: “On Monday (26 August at 7.1100), we indicated that ‘there is potential for the USD to drop to July low of 7.0636.’ Yesterday (August 29, spot at 7.1290), I indicated that “downward momentum is slowing, and if the USD were to hit 7.1460 (“strong resistance level”), it would mean the USD is no longer falling. The USD subsequently sold off sharply, falling to a low of 7.0859. The increase in momentum has increased the chance for the USD to drop to and potentially fall below 7.0636. Looking ahead, the next level to watch below 7.0636 is 7.0400. On the upside, the ‘strong resistance’ level dropped to 7.1350 from 7.1460.”