Rangebound between 142.40 and 144.00 – UOB Group

The US dollar (USD) is likely to trade in a range between 142.40 and 144.00. In the long term, the USD is likely to trade in a downtrend; the likelihood of it breaking significant support at 140.80 is not high, note UOB Group FX strategists Quek Ser Leang and Peter Chia.

The probability of a break below 140.80 is not high

24 HOURS: “We expected the USD to trade between 142.00 and 143.50 yesterday. The USD then traded in a wider range than expected (141.94/143.79), closing at 143.17. Price action provides no new clues. Today, we continue to expect the USD to trade in a range, likely between 142.40 and 144.00.”

WEEKS 1-3: “Our update from yesterday (09 September, spot at 142.65) still stands. As pointed out, we expect the USD to trade in a downtrend. However, given the tentative build-up of momentum, the likelihood of the USD breaking the significant support level at 140.80 is not high. To maintain the upside momentum, the USD must not breach the ‘strong resistance’ at 144.00 (no change in level).”