The sharp rise in US Dollar (USD) has scope to extend to 148.30; the major resistance at 148.80 is unlikely to be tested. In the longer run, USD has likely moved back into a range-trading phase between 146.50 and 148.80, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Major resistance at 148.80 is unlikely to be tested

24-HOUR VIEW: "When USD was at 147.20 in the early Asian session yesterday, we were of the view that it 'is likely to trade in a range between 146.80 and 147.85.' USD subsequently dipped to 147.02 before rising sharply, reaching a high of 147.98. The sharp rise has scope to test 148.20 before the risk of a pullback increases. USD is unlikely to test the major resistance at 148.80. Support is at 147.55; a breach of 147.20 would indicate that USD is not rising further."

1-3 WEEKS VIEW: "We continue to hold the same view as last Friday (15 August, spot at 147.15). As highlighted, USD “has likely moved back into a range-trading phase, probably between 146.50 and 148.80."