The US Dollar (USD) continues to show strength, with a potential test of the resistance at 162.00 on the horizon. If the USD manages to break above 162.00, the next level to keep an eye on is 163.00, according to UOB Group FX strategists.
In terms of support levels, there has been a shift with strong support now seen at 160.30, up from 159.80.
Looking at the short-term view, it was anticipated that the USD would trend upwards, with a caution that breaking above 161.50 might be a challenge. Despite reaching a high of 161.73 and closing at 161.45 (+0.39%), the conditions are currently overbought. However, as long as the USD remains above 161.00 (with minor support at 161.30), there is a possibility of testing the resistance at 162.00 before the risk of a pullback increases. A sustained break above 162.00 might not occur in the immediate future.
Taking a longer-term view, there has been a positive outlook on the USD since the middle of last month. With the USD surpassing 161.50 sooner than expected and reaching a high of 161.73, the focus is now on the next resistance level at 162.00. Should the USD break above this level, the next target is 163.00. On the downside, the strong support level has been adjusted to 160.30 from 159.80.
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In conclusion, while the USD is showing strength and potential for further upward movement, it is essential to be aware of the risks involved in trading. The views expressed in this article are solely those of the authors and do not represent FXStreet’s official policy. It is advisable to exercise caution and diligence in all investment activities to mitigate potential risks and losses.