In view of FX Strategists at UOB Group, the pair’s attention has now shifted to the mid-114.00s.
24-hour view: “We expected USD “to move above 113.80” yesterday but were of the view “114.00 is likely out of reach for now”. However, USD managed to edge above 114.00 and touched 114.08 before ending the day on a solid note (NY close of 114.06). The up-move appears to be over-extended but USD could test 114.25 first before the current USD strength should ease off. The next resistance is at last month’s peak of 114.54 and this level is not expected to be challenged for today. Support is at 113.80 but only a move back below 113.60 would indicate that the current upward pressure has eased”.
Next 1-3 weeks: “While we highlighted yesterday (08 Nov, spot at 113.55) “there is good chance for USD to move to 114.00”, the pace of the advance has been faster than anticipated (USD touched 114.08 during NY hours). As highlighted, a break of 114.00 would shift the focus to the October’s peak of 114.54. At this stage, the odds for a sustained move above 114.54 are not high. All in, we continue to expect USD stay underpinned in the coming days as long as the 113.20 ‘key support’ is intact (level previously at 112.90)”.
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