Set to continue trading choppily – UOB Group

The US Dollar (USD) could continue to trade choppily but is likely to stay within a 140.00/146.00 range, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

Likely to stay within a 140.00/146.00 range

24-HOUR VIEW: “On Monday, USD rebounded strongly, reaching a high of 143.91. Yesterday, when USD was at 143.80, we were of the view that it ‘could rebound further to 144.50, but a sustained rise above this level is unlikely.’ We pointed out that ‘support levels are at 143.30 and 142.80.’ Our view was not wrong, as USD rose to 114.53, dropped to 142.96, rebounding to close largely unchanged at 143.56 (-0.04%). The price movements appear to be part of a range trading phase. Today, we expect USD to trade between 142.90 and 144.30.”

1-3 WEEKS VIEW: “Our update from Monday (30 Sep, spot at 142.60) remains valid. As highlighted, the recent buildup in upward momentum has dissipated. From here, USD could continue to trade in a choppy manner, but it is expected to stay within a range of 141.00/146.00 range.”