Taiwan s dollar may advance 1 percent to an 18-month high against its U.S. counterpart should it break through resistance at NT$31.695, according to Winston Tang, a technical analyst at Forecast Pte in Singapore.
The Taiwanese currency will likely climb to NT$31.50, given its recent bullish trend, Tang said in an interview yesterday. That level would be the Taiwan dollar s strongest since Sept. 8, 2008. The currency broke through NT$32 on March 8, a level traders said the central bank had closely guarded earlier.
The Taiwan dollar is now at a critical level, Tang said. I will turn more bearish on the U.S. dollar if the NT$31.695 level gives way, when there will be another round of selling of the greenback, he said.
The island s currency has appreciated 0.7 percent against the U.S. dollar so far this year, lagging behind its regional peers such as the Malaysian ringgit and the Indonesian rupiah, which have risen 3.1 percent and 2.5 percent respectively. Taiwan s currency strengthened 2.6 percent last year.
The local dollar appreciated 0.2 percent to NT$31.77 as of 12:03 a.m. local time, according to Taipei Forex Inc. It touched NT$31.727 yesterday, the strongest level since Feb. 6.
The currency last touched NT$31.695 on Jan. 15 and has since retreated 0.2 percent, suggesting this is a resistance level, according to Tang. On Feb. 6, it weakened after touching NT$31.7.
In technical analysis, investors and analysts study charts of trading patterns and prices to forecast price changes in a security, commodity, currency or index. A resistance level is where sell orders for a currency may be clustered.
The Taiwanese currency will likely climb to NT$31.50, given its recent bullish trend, Tang said in an interview yesterday. That level would be the Taiwan dollar s strongest since Sept. 8, 2008. The currency broke through NT$32 on March 8, a level traders said the central bank had closely guarded earlier.
The Taiwan dollar is now at a critical level, Tang said. I will turn more bearish on the U.S. dollar if the NT$31.695 level gives way, when there will be another round of selling of the greenback, he said.
The island s currency has appreciated 0.7 percent against the U.S. dollar so far this year, lagging behind its regional peers such as the Malaysian ringgit and the Indonesian rupiah, which have risen 3.1 percent and 2.5 percent respectively. Taiwan s currency strengthened 2.6 percent last year.
The local dollar appreciated 0.2 percent to NT$31.77 as of 12:03 a.m. local time, according to Taipei Forex Inc. It touched NT$31.727 yesterday, the strongest level since Feb. 6.
The currency last touched NT$31.695 on Jan. 15 and has since retreated 0.2 percent, suggesting this is a resistance level, according to Tang. On Feb. 6, it weakened after touching NT$31.7.
In technical analysis, investors and analysts study charts of trading patterns and prices to forecast price changes in a security, commodity, currency or index. A resistance level is where sell orders for a currency may be clustered.
