The US Dollar (USD) is likely to trade in a range between 6.9700 and 7.0100. In the longer run, price action continues to suggest USD weakness, albeit likely at a slower pace; the levels to monitor are 6.9400 and 6.9200, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

Markets to monitor support levels at 6.9400 and 6.9200

24-HOUR VIEW: “USD rebounded strongly on Wednesday. Yesterday (Thursday), we pointed out that ‘the rebound lacks momentum, and instead of continuing to advance, USD is more likely to trade in a 7.0180/7.0430 range.’ Instead of trading in a range, USD plummeted to a low of 6.9717, closing lower by a whopping 0.84% (6.9730). Inevitably, the outsized decline has resulted in oversold conditions, and USD is unlikely to weaken much further. Today, USD is more likely to trade in a range, probably between 6.9700 and 7.0100.”