The US Dollar (USD) is likely to trade in a 7.0010/7.0350 range. 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.

Likely to trade in a 7.0010/7.0350 range

24-HOUR VIEW: “After USD rebounded on Monday, we indicated yesterday (Tuesday) that USD could continue to rebound, but it does not appear to have enough momentum to threaten the strong resistance at 7.0350.’ In line with our expectations, USD rebounded, even though it almost broke above 7.0350 (high has been 7.0350). Despite the advance, there has been no significant increase in momentum, and instead of continuing to rise, USD is more likely to trade in a 7.0010/7.0350 range today.”