Momentum has increased slightly, but not enough to suggest a sustained advance. The US Dollar (USD) is likely to trade in a 7.2600/7.3100 range for now, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

Likely to trade in a 7.2600/7.3100 range for now

24-HOUR VIEW: “Our view for USD to trade in a sideways range of 7.2650/7.2850 was incorrect. Instead of trading in a range, USD rose, reaching a high of 7.2924. Upward momentum has increased, albeit slightly. Today, as long as 7.2810 (minor support is at 7.2845) is not breached, USD could rise to 7.2990 before the risk of a pullback increases. The major resistance at 7.3100 is unlikely to come under threat.”

1-3 WEEKS VIEW: “Our most recent narrative was from last Friday (12 Jul, spot at 7.2685), wherein USD ‘is likely to trade with a downward bias towards 7.2400.’ We highlighted that ‘the downward bias is intact as long as USD remains below 7.2910.’ Yesterday, USD broke above 7.2910 (high of 7.2924). Downward momentum has faded, but while upward momentum has increased slightly, it is not enough to suggest a sustained advance. From here, USD is more likely to trade in a 7.2600/7.3100 range.”