To trade in a range between 6.9700 and 7.0100 – UOB Group

The US dollar (USD) is likely to trade in a range between 6.9700 and 7.0100. Longer term, price action continues to suggest USD weakness, albeit likely at a slower pace; levels to monitor are 6.9400 and 6.9200, note UOB Group FX analysts Quek Ser Leang and Lee Sue Ann.

Markets need to monitor support levels at 6.9400 and 6.9200

24 HOURS: “The USD bounced back strongly on Wednesday. Yesterday (Thursday), I pointed out that “the rebound lacks momentum and instead of continuing to advance, the USD is more likely to trade in the 7.0180/7.0430 range.” Instead of trading in a range, the USD fell to a low of 6.9717, closing 0.84% ​​lower (6.9730). Inevitably, the excessive drawdown has led to oversold conditions, and the USD is unlikely to weaken much further. Today, the USD is more likely to trade in a range, probably between 6.9700 and 7.0100.”

WEEKS 1-3: “I turned negative on the USD last Friday (Sept 20) when it was trading at 7.0700, indicating a ‘possible trade to the downside towards 7.0500.’ After the USD crashed, in our most recent narrative two days ago (September 25th at 6.9990), we pointed out that “after the recent sharp decline, it is not unreasonable to expect further weakness in the USD, more chosen when there are no significant levels of support. almost.’ I also pointed out that “short-term levels to monitor are 6.9700 and 6.9400.” Yesterday, the USD traded at a low of 6.9717. While price action continues to suggest further USD weakness, severe short-term oversold conditions will likely lead to a slower pace of decline. The levels to monitor are 6.9400 and 6.9200. We will continue to expect a lower USD provided 7.0450 (‘strong resistance’, previously at 7.0600) is not breached.”