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”.