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FX Strategists at UOB Group stay neutral on the pair and believe a test of levels south of 107.90 has lost some momentum.

Key Quotes

24-hour view: “USD traded within a 108.37/109.00 range yesterday, narrower than our expected 108.35/109.10 sideway trading range. The consolidation phase appears incomplete and further range trading is expected, likely within a 108.40/109.10″.

Next 1-3 weeks: “The sharp pull-back from last week’s 111.39 peak is viewed as part of a broader consolidation phase. However, the pullback has room to extend lower towards 107.90. At this stage, a sustained move below this level is not expected. Only a move above the key resistance at 109.60 would indicate that the current downward pressure has eased”.