FX Strategists at UOB Group believe the pair is poised to extend the consolidation in the next weeks.

Key Quotes

24-hour view: “The solid resistance indicated at 107.75 yesterday did not come into the picture as USD traded mostly sideways after touching a high of 107.51. The undertone still appears to be positive and from here, we expect USD to grind higher but a clear break of 107.75 seems unlikely. Support is at 107.20 followed by 107.00”.

Next 1-3 weeks: “There is not much to add as USD traded in a relatively quiet manner over the past few days. We continue to hold a neutral stance and expect USD to trade sideways. The shorter-term undertone has improved somewhat and this could lead to a test of the top of our expected 106.20/107.90 consolidation range but at this stage, it is premature to expect a sustained up-move”.