There is room for the US dollar to rise to test 157.55, and key resistance at 158.00 is likely out of reach for now. In the long term, the US dollar is expected to continue moving higher; The next level to watch is 158.00, noted UOB Group FX analysts Kwek Sir Liang and Peter Chia.
The dollar is expected to continue moving upward
24-hour view: “The US dollar rose to a high of 155.73 on Tuesday. Yesterday, Wednesday, we highlighted the following: “Despite the advance, bullish momentum increased modestly. Today, the US dollar could rise, but the probability of it breaking above the main resistance at 156.00 is not high. Note that there is another resistance level at 155.75″. We did not expect the bullish momentum to accelerate, as the US dollar rose to a higher level. The sharp rise at 157.18 seems excessive, but there is room for the US dollar to rise to test 157.55, and the next resistance level at 158.00 is likely out of reach at the moment.
1-3 week view: “Two days ago (Nov 18, spot at 155.25), we noted that ‘renewed bullish momentum suggests there is an opportunity for the USD to rise above 155.55’. We also highlighted that the USD ‘must close above this level before a move to 156.00 is expected’. After the USD subsequently rose and closed at 155.50, we highlighted yesterday that ‘while we would have preferred a more decisive close above “At 155.55, the price action suggests there is room for the USD to rise and test 156.00. While our view of a USD rally was correct, we did not expect the way the USD rose yesterday, reaching a peak at 157.18. We still expect the USD to rise, and the level to watch is 158.00. On the downside, the ‘Strong Support’ level now lies at 155.60 154.70.”
