Upward momentum is building; if the US Dollar (USD) can break above 144.00, it could trigger a stronger recovery towards 145.50, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

Bulls can push above 144.00 and towards 145.50

24-HOUR VIEW: “We indicated yesterday that USD ‘has potential to test the major resistance at 144.00.’ USD subsequently rose to 143.94, closing at 142.62 (+0.25%). Slowing momentum, combined with overbought conditions suggests USD is unlikely to rise further. Today, we expect USD to trade in a range of 141.50/143.80.”

1-3 WEEKS VIEW: “Our update from yesterday (19 Sep, spot at 143.00) remains valid. As highlighted, if USD can break clearly above 144.00, it could trigger a stronger recovery towards 145.50. The likelihood of USD breaking clearly above 144.00 will remain intact, provided that the ‘strong support’ level at 141.00 is not breached.”