The US Dollar (USD) could to rise to 7.2630; the major resistance at 7.2800 is likely out of reach. In the longer run, momentum is beginning to slow; a breach of 7.2000 would mean that USD is not rising further, UOB Group’s FX strategists Quek Ser Leang and Lee Sue Ann note.

Momentum is beginning to slow

24-HOUR VIEW: “Yesterday, we were of the view that ‘there is scope for USD to rise to 7.2630’. However, USD rose less that expected to 7.2598, closing largely unchanged at 7.2559 ( 0.08%). The underlying tone still seems firm, and we continue to hold the view that USD could rise to 7.2630. The major resistance at 7.2800 is likely out of reach. The mild upward pressure is intact provided that 7.2370 is not breached (minor support is at 7.2440).”