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The short-term outlook on the pair remains neutral while there is still room for a move higher to the 114.00 area, noted FX Strategists at UOB Group.

Key Quotes

24-hour view: “In line with expectation, USD broke above the strong 113.50 resistance but the up-move was thwarted by the next resistance at 113.80 (high of 113.81). The underlying tone has improved and from here, a move above 113.80 would not be surprising. That said, the next resistance at 114.00 is likely out of reach for now. Support is at 113.20 followed by 112.90. The latter level is expected to be strong enough to hold any intraday pullback”.

Next 1-3 weeks: “USD rose to a high of 113.81 yesterday before easing off to close at 113.51 in NY. As highlighted yesterday, a NY closing above 113.50 would suggest USD is ready to challenge 114.00. While the improvement in upward momentum is not as strong as preferred, we see good chance for USD to move to 114.00. A break above this level would then shift the focus to the October’s peak of 114.54. All in, we expect USD to stay supported as long as the ‘key support’ at 112.90 is intact”.