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The pair stays neutral in the short term horizon and could test 107.90 in the next weeks, according to FX Strategists at UOB Group.

Key Quotes

24-hour view: “USD traded within a relatively narrow range yesterday and registered an ‘inside day’. Further range trading seems likely from here, expected to be within a 108.35/109.10″.

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”.