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The pair’s near term outlook has now shifted to neutral from bearish, informed FX Strategists at UOB Group.

Key Quotes

24-hour view: “The weak daily closing in NY last Friday and the weak opening in Sydney this morning does not bode well for USD. The pressure is clearly on the downside and the 110.75 support is likely to be tested. Further down, the next support is at 110.35 and this level could be out of reach for now. On the upside, 111.80 is expected to be strong enough to cap any intraday USD strength (minor resistance is at 111.50)”.

Next 1-3 weeks: “In our last update on 13 Jul (spot at 112.55), we were bullish USD and expected a move to 113.40. The bullish phase ended quickly as USD plummeted last Friday and closed sharply lower (closed at 111.39, -0.94%). The pressure has shifted quickly to the downside and while the outlook for USD is deemed as neutral for now, a test of the month-to-date low near 110.25 would not be surprising. On the upside, only a move 111.80 would indicate that the current downward pressure has eased”.