FX Strategists at UOB Group suggested that the pair's downside momentum could be running out of steam.
“Expectation for USD to move above the major 109.30 resistance was wrong as we witnessed a swift pull-back from a high of 109.21. The down-move is lacking in momentum and is viewed as part of a broader consolidation range and not the start of a sustained down-move. In other words, expect range trading at these lower levels, likely between 108.30 and 109.10”.
“While the bearish phase that started last Wednesday (12/4, spot at 109.65) is still intact, downward momentum is waning rapidly and those who are short should look to book some profit on any dip to 108.10/15 (ahead of the major 108.00 support)”.
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