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FX Strategists at UOB Group noted the pair stays poised to extend the consolidative theme in the next weeks.

Key Quotes

24-hour view: “We expected the recovery in USD to “extend to 110.40″ yesterday. In line with expectation, USD moved higher and touched 110.44 before ending the day on a firm note. While upward momentum is not exactly strong, the current recovery has room to extend further to 110.65. At this stage, a clear break above 110.65 seems unlikely (next resistance is at 110.90). On the downside, support is at 110.10 but the stronger level is at 109.85″.

Next 1-3 weeks: “In a last update on 14 Jun (spot at 110.25), we held the view that USD has room to move higher and ‘test’ the 111.00 resistance. USD subsequently touched a high of 110.90 but has since eased off. From here, there is no change to the neutral outlook and USD has likely moved into a broad consolidation phase and is expected to trade sideways to lower, likely between 109.10 and 110.65″.