The pair is seen prolonging its sideline theme in the next weeks, according to FX Strategists at UOB Group.
24-hour view: “USD traded sideways as expected albeit at a narrower range than anticipated. The subsequent weak daily closing in NY suggest the immediate bias is tilted to the downside but a break of the major 106.60 support is not expected (106.85 is already quite a strong level). Resistance is at 107.40 followed by 107.65”.
Next 1-3 weeks: “We noted last Friday (13 Apr, 107.25) the improved undertone “could lead to a move above 107.50” but “a break above the top of the expected 106.20/107.90 consolidation range is not expected”. USD subsequently rose to a high of 107.77 before easing off to end the day unchanged. The price action reinforces our current view and we continue expect USD to trade sideways within the range mentioned above”.
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