The US Dollar (USD) is likely to trade in a sideways range of 7.1700/7.1880. Downward momentum is fading, and the likelihood of USD revisiting the 7.0635 support level has diminished, UOB Group FX strategists Quek Ser Leang and Peter Chia note.

A move below 7.1700 is possible near term

24-HOUR VIEW: “Last Friday, USD traded sideways before closing largely unchanged. Yesterday (Monday), we held the view that ‘further sideways trading seems likely, probably in a range of 7.1620/7.1900.’ Our view of sideways trading was not wrong, even though USD traded in a narrow range of 7.1728/7.1854, again closing largely unchanged (7.1783, 0.05%). The price action provides no fresh clues. Today, we continue to expect USD to trade sideways, likely in a range of 7.1700/7.1880.”