FX Strategists at UOB Group remain neutral on the pair and noted that a sustained up move seems unlikely.
Key Quotes
24-hour view: “Against our expectation for a short-term top, USD surged and took out the strong 110.45/50 resistance (high of 110.64). While the pressure has flipped to the upside, momentum indicator is not exactly strong and the next major resistance at 111.00 is unlikely to come under serious threat (minor resistance is at 1107.75). Support is at 110.20 followed by 109.95″.
Next 1-3 weeks: “As highlighted yesterday, the recent ‘whippy’ price actions offer no fresh clues on the USD direction and we continue to hold a neutral stance. USD tested the top end of our expected 109.10/110.65 consolidation range yesterday (overnight high of 110.64) before ending the day on a strong note. The undertone has improved somewhat but for the next couple of days, a sustained break above 111.00 seems unlikely”.
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