US Dollar (USD) is likely to trade in a range between 146.70 and 147.70. In the longer run, sharp declines appear excessive, but USD could drop to 146.30. The odds for a continued decline below this level are not high, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD is likely to trade between 146.70 and 147.70

24-HOUR VIEW: "On Wednesday, USD dropped to a low of 146.57 and then rebounded. Yesterday, we were of the view that 'the sharp drop appears excessive, and instead of continuing to decline, USD is more likely to trade in a range between 146.70 and 148.00.' USD subsequently fluctuated between 146.58 and 147.51, closing slightly higher by 0.12% at 147.23. The price action provides no fresh clues, and we continue to expect USD to trade in a range today, most likely between 146.70 and 147.70."

1-3 WEEKS VIEW: "We continue to hold the same view as yesterday (02 Oct, spot at 147.30). As highlighted, 'the recent sharp declines appear excessive, but USD could drop to 146.30.' However, we noted that 'the odds of a continued drop below this level are not high.' Overall, only a breach of 148.20 (‘strong resistance’ level was at 148.55 yesterday) would indicate that the decline in USD is stabilising."