Upward momentum is starting to build, but for a continued advance, US Dollar (USD) must first close above 153.00, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Upward momentum is starting to build

24-HOUR VIEW: "Yesterday, we noted 'the underlying tone has firmed somewhat', and we held the view that 'this is likely to lead to a higher range of 152.40/153.30 rather than a sustained advance'. USD then traded between 152.54 and 153.25 before closing marginally higher by 0.01% at 152.87. The current price movements are likely part of a range-trading phase, probably between 152.20 and 153.05."

1-3 WEEKS VIEW: "Last Friday (24 Oct, spot at 152.60), we highlighted that 'upward momentum is starting to build, but USD must close above 153.00 before a sustained rise can be expected.' Yesterday, we indicated that 'upward momentum continues to build, but we prefer to wait for a close above 153.00 before adopting a positive stance'. We will continue to hold the same view, as long as 152.00 (no change in ‘strong support’ level from yesterday) is not breached."