There is still room for the pair to re-visit 110.25 in the next weeks, suggested FX Strategists at UOB Group.
Key Quotes
24-hour view: In line with expectation, USD traded sideways last Friday albeit at a narrower range than anticipated. Indicators have turned mostly neutral with the quiet consolidation and further range trading seems likely from here. Expected range for today; 110.65/111.25″.
Next 1-3 weeks: “USD traded in a quiet manner last Friday and registered an ‘inside day’. While we continue to anticipate USD to test the month-to-date low at 110.25, the muted price action over the past several days have diminished the odds for such a scenario. That said, only a break of the ‘key resistance’ at 111.80 would indicate that the current downward pressure has eased (ideally, USD should stay below 111.50 from here)”.
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