Instead of continuing to weaken, the US Dollar (USD) is likely to trade in a 7.1100/7.1700 range. Further USD weakness is not ruled out, but the low near 7.0635 is solid support now, UOB Group FX strategists Quek Ser Leang and Lee Sue Ann note.

May try to test 7.1700 in mid term

24-HOUR VIEW: “While we expected USD to weaken yesterday, we indicated that ‘the support at 7.1300 is unlikely to come under threat.’ We obviously did not anticipate the wild price action, as USD plunged to 7.0636 and then snapped back to close at 7.1350 (-0.48%). The rebound in severely oversold conditions suggests instead of continuing to decline, USD is likely to trade in a 7.1100/7.1700 range today.”