Room for USD to rise to 7.1500; a sustained break above this level seems unlikely. In the longer run, momentum is slowing; a breach of 7.0900 would indicate that USD is more likely to trade in a range instead of strengthening further, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

Room for USD to rise to 7.1500

24-HOUR VIEW: “We indicated yesterday that ‘there is room for USD to rise to 7.1500 before levelling off.’ However, USD traded in a tight range between 7.1300 and 7.1385, closing unchanged at 7.1364. Despite the quiet price action, the underlying tone seems firm. Today, we continue to see room for USD to rise to 7.1500. A clear break above this level is unlikely. Support levels are at 7.1300 and 7.1250.”

1-3 WEEKS VIEW: “Our update from two days ago (21 Oct, spot at 7.1170) remains valid. As highlighted, the recent buildup in momentum is slowing, and a breach of 7.0900 would indicate that USD is more likely to trade in a range instead of strengthening further. Looking ahead, USD has to break and remain above 7.1500 before an advance to 7.1600 can be expected.”