Unlikely to break above 7.3300 – UOB Group

US Dollar (USD) could edge higher but is unlikely to break above 7.3300. In the longer run,  outlook remains mixed, but USD is likely to trade in a narrower range of 7.2500/7.3300, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.  

USD is likely to trade in a narrower range of 7.2500/7.3300

24-HOUR VIEW: “We indicated last Friday that ‘momentum indicators remain neutral, and we continue to expect range trading, probably in a range of 7.2700/7.3000.’ However, USD traded in a higher range between 7.2830 and 7.3111. The price action has resulted in a slight increase in upward momentum. Today, USD could edge higher, but as momentum is not strong, it is unlikely to break above 7.3300. Support is at 7.3000, followed by 7.2920.” 

1-3 WEEKS VIEW: “We highlighted last Friday (07 Feb, spot at 7.2865) that ‘while the outlook remains mixed, the decreasing volatility over the past couple of days suggests USD could trade in a narrower range of 7.2500/7.3300.’ There is no change in our view.”