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According to FX Strategists at UOB Group, the pair keeps its bullish view unchanged and is now targeting the 114.70 area in the short-term horizon.

Key Quotes

24-hour view: “USD hit a fresh multi-month high of 114.06 before easing off. Despite the fresh high, the up-move is struggling to maintain its momentum and further sustained advance is not expected (at least not for today). USD is more likely to consolidate and trade sideways at these higher levels, likely within a 113.70/114.15 range”.

Next 1-3 weeks: “We highlighted last Friday (28 Sep, spot at 113.40) a “NY closing above 113.75 would indicate the current positive USD outlook has morphed into a bullish phase”. The condition was met when USD closed at 113.91 yesterday (01 Oct). The immediate bullish ‘target’ is at 114.70 while the ‘stop-loss’ level is at 113.15. That said, short-term indicators are at severely overbought levels and this could lead to a couple of days of consolidation first (before the next leg higher in USD can be expected)”.