Likely to trade sideways between 7.0650 and 7.1350 – UOB Group

For now, the US dollar (USD) is likely to trade sideways between 7.0650 and 7.1350, note UOB Group FX strategists Quek Ser Leang and Alvin Liew.

Range between 7.0650 and 7.1350

24 HOURS: “The USD traded in a range of 7.0738/7.1001 last Friday, closing little changed at 7.0969 (+0.09%). It traded on a firm note in early Asian trade today, but while it could move higher, we view any advance as part of a larger trading range of 7.0850/7.1150. In other words, the USD is unlikely to break clearly below either 7.0850 or above 7.1150.”

WEEKS 1-3: “The current price movements are likely part of a sideways trading phase. For now, we expect the USD to trade between 7.0650 and 7.1350. Looking ahead, the USD needs to break clearly below 7.0650 or above 7.1350 before a sustained move can be expected.”