The US Dollar (USD) could rise 145.50; a sustained advance above this major resistance level is unlikely. In the longer run, upward momentum has dissipated; 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.

USD likely to stay within a 140.00/146.00 range

24-HOUR VIEW: “Last Friday, we held the view that USD ‘could rise above the major resistance at 145.50, but a sustained advance above this level seems unlikely.’ We were also of the view that ‘the next resistance at 146.10 is unlikely to come into view.’ The subsequent price movements did not turn out as we anticipated; USD soared to a high of 146.49, then quickly plunged to a low of 142.05. The outsized selloff seems to be overdone, but the weakness in USD could retest the 142.00 level before stabilisation is likely. Today, a sustained decline below 142.00 is unlikely. Resistance 143.70; a breach of 144.50 would mean that the weakness has stabilised.”