Flat momentum suggests further range trading, most likely between 7.3380 and 7.3550. Upward momentum is beginning to fade; a breach of 7.3250 would suggest that 7.3700 is not coming into view, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Upward momentum is beginning to fade

24-HOUR VIEW: "Yesterday, we expected USD to 'continue to trade in a range, most likely between 7.3350 and 7.3550.' USD then traded in a subdued manner, closing largely unchanged at 7.3450 (-0.05%). Flat momentum indicators continue to suggest range trading, most likely between 7.3380 and 7.3550."

1-3 WEEKS VIEW: "We have held the view that 'there is room for USD to retest the 7.3700' since early last week. On Tuesday (14 Jan, spot at 7.3410), we noted that 'upward momentum is beginning to fade, and a breach of 7.3250 (‘strong support’ level) would suggest that 7.3700 is not coming into view.' USD traded in a quiet manner over the past few days, and we continue to hold the same view for now."