Upward pressure has faded; US Dollar (USD) is likely to trade in a range of 147.80/149.65, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Upward pressure has faded

24-HOUR VIEW: "We did not expect USD to drop to a low of 148.45yesterday, as we had expected range-trading between 149.00 and 149.75. The sharp drop appears to be getting ahead of itself, and USD is unlikely to decline much further. Today, USD is more likely to trade in a lower range of 148.20/149.30."

1-3 WEEKS VIEW: "Last Friday (26 Sep, spot at 149.65), we highlighted that 'the sharp rally over the past couple of days appears excessive, but with no sign of slowing just yet, USD could rise further to 150.15, with lesser odds of reaching the major resistance at 150.90.' Yesterday, USD fell and broke below our ‘strong support’ level at 148.50 (low was 148.45). The breach of our ‘strong support’ level means that upward pressure has faded. From here, we expect USD to range-trade, most likely in a range of 147.80/149.65."