The US Dollar (USD) could continue to rebound; there does not appear to be enough momentum for it to threaten the resistance at 7.0350. In the longer run, downward momentum is beginning to slow; if USD breaches 7.0350, it would suggest that it could trade in a range for a period, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

Downward momentum is beginning to slow

24-HOUR VIEW: “We expected USD to edge lower yesterday. We were incorrect, as instead of edging lower, USD rebounded strongly to 7.0120. The strong rebound has resulted in an increase in momentum. Today, USD could continue to rebound, but it does not appear to have enough momentum to threaten the strong resistance at 7.0350. Note that there is another resistance level at 7.0240. Support is at 6.9980, a breach of 6.9850 would indicate that the current upward pressure has eased.”