In opinion of FX Strategists at UOB Group, the near term outlook on spot remains neutral, while it is expected to navigate in the 110.90/111.45 range in the next weeks.
Key Quotes
24-hour view: “USD traded between 110.94 and 111.35 yesterday, narrower than our expected 110.90/111.45 consolidation range. Indicators are still mostly neutral and further consolidation would not be surprising, likely between 110.90 and 111.45. That said, the underlying tone has improved somewhat and a clear break of 111.45 could lead to a rapid rise to test the next resistance at 111.80″.
Next 1-3 weeks: “Despite the overall positive indications, USD has not been able to make much headway on the upside as it traded within relatively narrow ranges over the past couple of days. We continue see scope for a higher USD even though the major 112.14 resistance is unlikely to come into the picture. Only a break of 110.50 would indicate that the current mild upward pressure has eased”.
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