A break above the major resistance at 7.1330 is not ruled out; a sustained rise above this level seems unlikely for now. In the longer run, there has been an increase in momentum, but the US Dollar (USD) has to break and remain above 7.1350 before a sustained rise is likely, UOB Group FX strategists Quek Ser Leang and Peter Chia note.

Bulls are set to push towards 7.1330

24-HOUR VIEW: “While we expected USD to edge higher yesterday, we were of the view that ‘any advance is part of a higher trading range of 7.0850/7.1150.’ However, USD rose more than expected to 7.1250, closing on a firm note at 7.1220 ( 0.35%). The increase in momentum is likely to lead to further USD strength. A break above the major resistance at 7.1330 is not ruled out, but a sustained rise above this level seems unlikely for now. Support levels are at 7.1140 and 7.1000.”