**Increased USD Momentum** The US Dollar (USD) may keep strengthening, with a potential rise to 150.15, although it’s less likely to hit 150.90. Analysts from UOB Group suggest that the current move is within the 149.20 to 150.15 range. In the past day, the USD unexpectedly jumped to 149.92, despite expectations of it falling between 148.20 and 149.15. However, this upward movement might not last because of negative divergence and overbought conditions. **Potential Gains and Risks** Looking ahead one to three weeks, the USD has already surpassed expectations by reaching 149.92. While the momentum seems high, further gains depend on the USD staying above solid support at 148.50. The insights shared contain forward-looking statements that come with risks. They should be viewed as informational and not as buy or sell advice. Always conduct thorough research before investing, as mistakes can occur. This content does not reflect FXStreet’s official views. FXStreet and the author are not responsible for any inaccuracies or losses from this information. They are not registered investment advisors, and this article should not be considered investment advice. We observe the US Dollar trading in a new, higher range, likely between 149.20 and 150.15 after its recent rise. Although momentum could drive the dollar closer to 150.15 soon, it seems overbought. This means further gains may be challenging, making aggressive long positions risky. Given the overbought conditions and negative divergence, selling call options with strike prices above 150.90 might be a smart strategy. This allows traders to earn premium while predicting that the dollar’s increase will slow before hitting this major resistance. The chances of the dollar moving significantly above 150.15 seem low for now. **Fundamental Support for the Dollar** The dollar’s increase is supported by a large interest rate gap. The Federal Reserve has kept rates steady to fight ongoing inflation, with the latest US Consumer Price Index (CPI) data for August 2025 showing 2.8%. Meanwhile, Japan’s inflation is low at 1.9%, giving the Bank of Japan little reason to change its ultra-low interest rate policy. It’s important to keep in mind the market’s memory of late 2022 when Japanese authorities intervened heavily as the dollar approached 152.00. This previous intervention creates a psychological barrier at the 150.90 level, increasing the risk of official action to weaken the dollar. Traders should be cautious about maintaining long positions near these sensitive levels. For those wanting to guard against a market reversal, a break below the 148.50 support level would indicate that the bullish momentum has diminished. Therefore, buying put options just below 148.50 offers a clear way to prepare for a possible downturn. This level is critical for the current upward trend. Create your live VT Markets account and start trading now.

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