According to FX Strategists at UOB Group, the pair is expected to remain sidelined in the near term horizon.
24-hour view: “We expected a higher USD yesterday but held the view that any up-move is “expected to struggle to move above 110.45”. USD managed to touch a high of 110.48 before pulling back sharply. A short-term top is in place and we expect 110.45/50 to continue to offer solid resistance. That said, any weakness is viewed as part of a broader consolidation phase and we do not expect a break below the 109.35 low seen earlier this week (109.70 is already a strong support)”.
Next 1-3 weeks: “The ‘whippy’ price actions over the past few days offer no fresh clues on the USD direction and we continue to hold a neutral stance. We continue to expect USD to trade sideways within a broad 109.10/110.65 range for now”.