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In view of FX Strategists at UOB Group, the pair’s outlook is now neutral and has moved into a correction phase.

Key Quotes

24-hour view: “Expectation for USD to dip below 112.80 did not materialize as it traded sideways instead before ending the day on a soft note (NY close of 112.94, -0.26%). We continue to see chance for USD to dip below 112.80 but at this stage, do not anticipate a break of the next support at 112.50. Resistance is at 113.20 followed by 113.50″.

Next 1-3 weeks: “We just shifted from a bullish to neutral stance yesterday (09 Oct, spot at 113.10) and there is no change to the view. As highlighted, the current movement is viewed as the early stages of a correction phase and USD is expected to trade with a negative bias from here. However, it is premature to expect the start of a major bearish reversal and at this stage, we view any weakness as part of a 112.50/114.00 range. Looking further ahead, there is risk of deeper pullback to 112.00 but the odds for such a move are not high for now”.