FX Strategists at UOB Group believe the pair could advance to the 112.90 level in the near term.
“The anticipated USD strength exceeded our expectation by exceeding the 112.20 target to hit a high of 112.30. The sharp and rapid pull-back suggests that upward momentum has eased and the current movement is likely the early stages of a consolidation phase. In other words, USD is expected to trade sideways at these higher levels, likely between 111.70 and 112.30”.
“The bullish target that was first indicated last Thursday was exceeded as USD hit a high of 112.30 yesterday. While upward momentum is not as strong as preferred but there is scope for USD to extend towards the next target at 112.90”.