USD strength is likely to continue; the levels to monitor are 7.1480 and 7.1600. In the longer run, strong and sudden surge suggests further USD strength to 7.1600, potentially 7.1900, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Levels to monitor are 7.1480 and 7.1600

24-HOUR VIEW: “When USD was trading at 7.0930 yesterday, we indicated that ‘while USD is likely to rise today, the major resistance at 7.1200 is still unlikely to come under threat.’ We did not anticipate USD to rally sharply, as it soared to a high of 7.1430. USD closed on a strong note at 7.1363 ( 0.59%). Today, we continue to expect USD strength, even though overbought conditions suggest the upside potential could be limited, and advance is likely to be at a more gradual pace. The levels to monitor are 7.1480 and 7.1600. On the downside, any pullback is likely to remain above 7.1100 with minor support at 7.1200.”