The US Dollar (USD) is likely to consolidate in a range between 1.3490 and 1.3520. While momentum has not increased much, USD is likely to head lower towards the significant support level at 1.3460, UOB Group FX strategists Quek Ser Leang and Peter Chia note.

USD is likely to head lower towards 1.3460

24-HOUR VIEW: “We noted yesterday that ‘the current price action appears to be part of a consolidation, likely between 1.3485 and 1.3515.’ USD subsequently traded in a narrower range than expected (1.3492/1.3515), closing largely unchanged at 1.3505 (+0.04%). Flat momentum indicators continue to suggest consolidation, likely between 1.3490 and 1.3520.”

1-3 WEEKS VIEW: “USD traded in a quiet manner yesterday, and there is not much to add to our update from Monday (08 Jul, spot at 1.3490). As highlighted, while USD declined last Friday, downward momentum has not increased much. However, USD is likely to head lower towards the significant support level at 1.3460. At this time, it is too early to determine if USD can break clearly below this level. The risk of USD breaking below 1.3460 will remain intact as long as 1.3535 (no change in ‘strong resistance’ level) is not breached.”