USD poised for further upside – UOB

Peter Chia, FX Strategist at UOB Group, believes the buck could be poised for a continuation of the up move.

Key Quotes

“It’s dollar bull, no matter how you cut it. In G10, the DXY breakout to the upside is validated on Fri, next resistance levels at 99.00 (current: 98.80)”.

“Current up-move in DXY seems to be setting up for a rally similar to that in Oct-Nov 2015, leading to the maiden rate hike in Dec 2015”.

“Trending indicator ADX also signals a strengthening dollar trend. The only missing sauce is USD positioning that is lagging behind the broader USD trend”.