24-hour view: We highlighted yesterday that “further USD strength is not ruled out.” However, USD did not strengthen further. Instead, it traded in a range of 140.73/141.81 before closing slightly lower at 141.44 (-0.25%). USD has likely moved into a consolidation phase. Today, we expect USD to trade between 140.70 and 141.90. 

Next 1-3 weeks: Yesterday (24 Jul, spot at 141.70), we highlighted that “the rapid increase in momentum is likely to lead to USD rising to 143.00.” We continue to hold the same view. However, overbought conditions could lead to a couple of days of consolidation first. On the downside, if USD breaks below 140.00 (no change in ‘strong support’ level), it would mean that 143.00 is not coming into view.