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FX Strategists at UOB Group remain neutral on the pair while there is room for a test of 110.25 in the next weeks.

Key Quotes

24-hour view: “Expectation for USD to test the strong 111.80 resistance did not pan out as it traded sideways in a relatively muted manner. The consolidation phase appears incomplete and further range trading is expected from here, likely within a range of 110.90/111.50″.

Next 1-3 weeks: “We just shifted from a bullish to neutral stance yesterday and there is no change to the view. As highlighted, while the outlook for USD is deemed as neutral, the immediate pressure has shifted to the downside and a test of month-to-date low near 110.25 would not be surprising. Only a clear break back above 111.80 would indicate that the current downward pressure has eased”.