The outlook on the pair remains neutral for the time being, while a test of the mid-110.00s is still on the cards, according to FX Strategists at UOB Group.
Key Quotes
24-hour view: “We noted last Friday that USD is likely to dip below the Thursday’s low of 109.29 but added that “a move below 109.00 is not expected”. USD subsequently touched a low of 109.13 before rebounding. Downward pressure has eased with the recovery and from here, USD is expected to trade sideways, likely between 109.15 and 109.65″.
Next 1-3 weeks: “USD tried but failed to move convincingly above 110.00 (high of 110.01 yesterday). Despite the pull-back from the high, there is still chance for USD to test the strong 110.45/50 resistance (before a more sustained pull-back can be expected). Only a break of 109.00 would indicate that the current mild upward pressure has eased”.
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