FX Strategists at UOB Group remain neutral on the pair in the near term.
24-hour view: “Instead of extending lower towards 112.20 (as expected yesterday), USD traded mostly sideways within a 112.36/112.86 range. The undertone remains weak and barring a move back above 112.85, we continue to anticipate a test of the 112.20 support (with lower odds for further extension to 111.85)”.
Next 1-3 weeks: “USD touched a high of 113.08 yesterday, holding below the strong resistance highlighted at 113.15 in recent updates. Despite the pullback from the high, the undertone is still positive but as indicated previously, only a clear break above 113.15 would suggest a stronger recovery towards 113.70 has started. Overall, USD is expected to stay underpinned as long as the key short-term support at 111.30 is intact”.
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