US Dollar (USD) may edge lower and test 151.20; a continued decline below this level is unlikely. In the longer run, the current price movements are likely the early stages of a 149.50/153.00 range-trading phase, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

Current price movements are a part of a range-trading phase

24-HOUR VIEW: "We expected USD to trade in a range two days ago. Yesterday, we indicated that 'the price movements still appear to be part of a range-trading phase, most likely between 151.85 and 152.75.' However, USD traded within a lower range of 151.58/152.61, closing on a soft note at 151.83, down 0.29%. Today, USD may edge lower and test 151.20. Given the current mild downward momentum, a continued decline below this level is unlikely. On the upside, resistance levels are at 152.00 and 152.40."

1-3 WEEKS VIEW: "On Monday (13 Oct, spot at 152.05), we indicated that 'the current price movements are likely to early stages of a range-trading phase, probably between 149.50 and 153.00.' We continue to hold the same view for now."