Set to trade with a downtrend – UOB Group

The US dollar (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 analysts Quek Ser Leang and Peter Chia.

The probability of it breaking below 140.80 is not high

24 HOURS: “We expected the USD to trade between 142.40 and 144.00 yesterday. The USD then traded in a range of 142.18/143.71, closing on a soft note at 142.43 (-0.53%). Downward momentum is starting to pick up, but not enough to suggest the start of a sustained decline. However, as long as 143.30 (minor resistance is at 142.70) is not breached, the USD is likely to decline, potentially falling below the July low of 141.66. The significant support level at 140.80 is unlikely to be threatened.”

VIEW 1-3 WEEKS: “We continue to maintain the same view as Monday (Sept 09, spot at 142.65). 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).”