US Dollar (USD) is under mild downward pressure; it could edge lower, but any decline is unlikely to break below 153.70. In the longer run, for the time being, USD is likely to trade in a 153.70/156.70 range, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD is under mild downward pressure

24-HOUR VIEW: "Following Monday’s choppy price action, we indicated yesterday that USD 'could continue to trade in an erratic manner, probably in a range of 154.50/156.00.' We did not expect USD to drop to a low of 154.16, closing at 154.33 (-0.27%). The decline has resulted in a slight increase in downward momentum. Today, we expect USD to edge lower, but given the mild downward momentum, any decline is unlikely to break below the major support at 153.70. On the upside, a breach of 155.00 (minor resistance is at 154.70) would suggest that the mild downward pressure has faded."

1-3 WEEKS VIEW: "There is not much to our update from yesterday (04 Feb, spot at 155.20). As indicated, USD 'is likely to trade in a 153.70/156.70 range for the time being.' Looking ahead, if USD were to break and remain below 153.70, it could trigger a sustained drop."