Search ForexCrunch

FX Strategists at UOB Group noted a surpass of the 113.00 handle is not ruled out in the near term horizon.

Key Quotes

24-hour view: “USD close at 112.79 in NY, just below the day’s high of 112.83. The immediate bias is clearly on the upside and while a move above 113.00 would not be surprising, USD is likely unable to break clearly above the July’s peak near 113.15. On the downside, only a break of 112.40 would indicate that the current upward pressure has eased (minor support is at 112.60)”.

Next 1-3 weeks: “We have held the same view since last Wednesday (19 Sep, spot at 112.30) wherein upward momentum for USD has improved and the “risk is clearly on the upside”. That said, we have doubts on whether USD can maintain a toehold above the major 112.80 resistance. USD rebounded strongly after dipping to a low of 112.26 yesterday (24 Sep) and the advance from the low is gaining momentum. From here, the focus has shifted to the July’s peak near 113.15 and in view of the improved momentum, a break above this level would not be surprising. However, there is another strong resistance at 113.45 and this level may not yield so easily. All in, we continue to hold a ‘positive’ stance as long as the ‘key support’ at 112.15 is intact (level previously at 111.75)”.