A test of the 111.65/70 band seems to be running out of steam, suggested FX Strategists at UOB Group.
“Against our expectation, USD cracked the 112.70/75 support to hit a low of 112.53. While downward momentum is not exactly very strong, there is scope for another leg lower towards 112.30 before a recovery can be expected”.
“The ease of which the 112.70 support was taken out last Friday came as a surprise. Downward momentum has improved and while the immediate bias is still clearly on the downside, we still see solid support at 111.65/70 but doubt this support can be taken out. That said, the downward pressure would continue to grow unless USD can reclaim 113.70 within these few days”.