Bets for further USD-weakness seems diminished for the time being, suggested FX Strategists at UOB Group.
Key Quotes
“USD traded sideways as expected albeit at a narrower range than anticipated. The daily closing is on the weak side and downward momentum is ticking higher even though any weakness is expected to face strong support at 110.65 and last week’s low near 110.20 is unlikely to be threatened for now. Resistance is at 111.50 but the key level is near 111.90”.
“USD traded mostly sideways over the last couple of days and downward momentum is beginning to show signs of waning. That said, until 111.90 (stop-loss level unchanged) is taken out, another push lower towards 110.10 is not ruled out but based on the recent price action, the odds for such a move have diminished. Those who are short should consider taking partial profit on any approach near to 110.10”.
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