The US Dollar (USD) could decline further, but it is unlikely to threaten the support at 7.2800. In the longer run, upward momentum has largely dissipated, and USD is expected to trade between 7.2700 and 7.3100 for the time being, UOB Group analysts Quek Ser Leang and Lee Sue Ann note.  

USD to trade between 7.2700 and 7.3100

24-HOUR VIEW: “Yesterday, we noted that ‘downward momentum is beginning to build.’ We also indicated that USD ‘could drop to 7.2900 but is unlikely to threaten the next support at 7.2800.’ While USD subsequently dropped, it only reached a low of 7.2917. Downward has increased further, albeit not much. Today, USD could continue to decline, but the support at 7.2800 is still unlikely to come under threat. There is another support at 7.2860. On the upside, if USD breaks above 7.3030 (minor resistance is at 7.2980), it would indicate that USD is not declining further.”

1-3 WEEKS VIEW: “We continue to hold the same view as yesterday (04 Jul, spot at 7.3000). As highlighted, the recent buildup of upward momentum had largely dissipated. The current price movements are likely part of a consolidation. For the time being, we expect USD to trade between 7.2700 and 7.3100.”