The US Dollar is expected to rise slightly, but it won’t likely reach the resistance level of 7.2330. Right now, it may trade between 7.1850 and 7.2450 since the downward momentum has mostly faded. In the short term, the currency is predicted to move between 7.1990 and 7.2190, closing at 7.2140, which is a slight increase of +0.06%. While some upward momentum is building, it’s not strong enough to break through 7.2330. There is also resistance at 7.2250 and support levels at 7.2100 and 7.2000.

Analysts Outlook On USD

Analysts have kept a negative view on the USD since early this month. The USD’s failure to drop means its decline towards 7.1700 seems unlikely unless it breaks above 7.2330. Instead, the USD is expected to stay between 7.1850 and 7.2450 due to the reduced downward momentum. It’s crucial to do thorough research before making any financial decisions, as markets carry risks and uncertainties, including possible losses. No specific investment advice is provided; all information should be independently verified for accuracy and completeness. The Dollar’s movements show hesitation to commit strongly in either direction. Trading in the 7.1850 to 7.2450 range indicates a market waiting for a clearer push, but neither buyers nor sellers seem eager. The recent uptick in short-term momentum has raised it to 7.2140, but not strongly enough to overcome resistance levels at 7.2250 or 7.2330. When we say upward momentum is developing but not strong enough to break resistance, we notice the price trying to rise but being met with selling pressure. This happens when traders who bought at lower prices take profits or when new sellers enter the market. Support between 7.2100 and 7.2000 is still intact, but if the price dips below that range, we’ll need to see a significant change in volume or another trigger to confirm a move. Chan’s earlier view that the Dollar might weaken hasn’t exactly been wrong; however, the lack of a downward move has made it hard for that prediction to fully materialize. It now faces some hesitation. This suggests that the market isn’t fully rejecting the idea of a decline, but conditions don’t support it yet. Therefore, we’re not forecasting a drop to 7.1700 unless we see a break above the current resistance. Until then, the sideways movement between familiar levels favors range-based strategies over breakouts.

Market Strategy And Signals

This means focusing on short bursts of volume at the range edges. If the price is rejected near the upper limit without breaking past 7.2330, a downward shift may happen again. Conversely, closing above 7.2330 wouldn’t just be a minor change; it would show real buyer commitment. On the lower end, if there’s a clean drop below 7.1990 with increased selling, it could open a path toward 7.1850. However, this is something to monitor rather than act on immediately. From our standpoint, it’s not the time to chase gains unless there’s a confirmed break and hold above the high end of the range. Neutral setups often become clearer when there’s uncertainty in direction. We’re focusing on the price reactions rather than predicting the next move. Let the reactions at the edges guide our views. Today’s bounce was modest and feels fragile without broader market support. It looks like risk appetite is low, so shorter time frames may reveal clearer signals. We will concentrate on volume at key levels and ignore the noise in between. Create your live VT Markets account and start trading now.

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