FX Strategists at UOB Group noted the pair has carved a short term low and it is now poised to gravitate in the 108.20/109.80 range for the next weeks.
“We highlighted yesterday that “downward momentum continues to wane and the risk of short-term low has increased considerably”.
“The break back above 109.30 (overnight high of 109.48) indicates that the 108.11 low seen on Monday (17/4) is a short-term low”.
“That said, it is too early to expect a sustained rebound and USD is more likely to trade sideways between 108.20 and 109.80 for now even though the immediate bias is for a probe higher towards the top of the expected consolidation range at 109.80. A break above this level would suggest a stronger rebound towards 111.55/60 has started”.