Increase in momentum is likely to lead to further US Dollar (USD) advance; 157.50 is likely out of reach for now. In the longer run, USD is facing mild upward pressure and could drift higher and test 157.50, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD is facing mild upward pressure

24-HOUR VIEW: "Last Friday, USD rose and closed at 156.81, up by 0.10%. USD continues to rise upon opening today. While the increase in momentum is likely to lead to further advance, the resistance at 157.50 is likely out of reach for now. Support is at 156.75; a breach of 156.60 would mean the USD is not advancing further."

1-3 WEEKS VIEW: "While the price action in USD over the past few weeks appears to be part of a consolidation phase, the firm underlying tone suggests there is room for USD to drift higher and test 157.50. A break above 157.50 is not ruled out, but given the current mild upward momentum, USD is unlikely to threaten last month’s high, near 157.80. To sustain the mild upward momentum, USD must not break below 156.35 (‘strong support’ level)."