The US Dollar (USD) is likely to edge higher. Any advance is unlikely to reach the major resistance at 7.3000 and 7.3100, UOB Group analysts note.
Below 7.2700 USD to turn lower
24-HOUR VIEW: “We noted yesterday that ‘the price movements still appear to be part of a sideways trading phase.’ We expected USD to trade in a range of 7.2750/7.2910. USD then traded in a slightly narrower range between 7.2763 and 7.2907. Despite the quiet price action, there has been a slight increase in momentum. Today, USD is likely to edge higher, but any advance is unlikely to reach the major resistance at 7.3000. Note that there is another resistance level at 7.2945. Support levels are at 7.2830 and 7.2780.”
1-3 WEEKS VIEW: “We have expected USD to strengthen since early last week. In our latest update from last Friday (21 Jun, spot at 7.2920), we indicated that ‘further USD strength is likely, and the resistance levels to watch are 7.3000 and 7.3100.’ While USD has not been able to make any further headway on the upside, we continue to hold the same view for now. However, if USD breaks below 7.2700 (no change in ‘strong support’ level), it would mean that USD is not strengthening further.”