FX Strategists at UOB Group believe the pair could have carved a short-term low.
“USD registered a range of 108.35/109.17 yesterday, close to our expectation of range trading between 108.30 and 109.10. The consolidation phase appears incomplete even though the undertone has improved somewhat and the immediate bias is for a probe higher towards 109.30”.
“Downward momentum continues to wane and the risk of short-term low has increased considerably. In other words, the bearish phase that started last Wednesday (12/4, spot at 109.65) appears to be close to ending. Confirmation is upon a move above 109.30. Those who are shorts should look to book profit if there is any dip towards 108.10/15”.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these securities. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Forex involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.