24-hour view: Yesterday, we held the view that “there is scope for USD to dip to 146.50 before a more sustained recovery is likely.” However, USD rebounded strongly from 146.82 to 148.51. The strong rebound appears to be overdone, and USD is unlikely to rise further. Today, USD is more likely to trade in a range of 147.00/148.50. 

Next 1-3 weeks: After USD plummeted to 146.65 two days ago, we indicated yesterday (30 Nov, spot at 147.10) that “downward momentum is building rapidly, and USD is likely to continue to weaken.” Our view was proven wrong quickly as it rebounded strongly and took out our ‘strong resistance’ at 148.40 (high of 148.51). The momentum buildup has faded. For the time being, USD is likely to trade in a range between 146.65 and 149.30 before heading lower at a later stage.