Sharp pullback appears to be overextended; instead of continuing to weaken, the US Dollar (USD) is likely to trade in a range of 152.50/153.85. In the longer run, upward momentum has slowed sharply and quickly; a break of 152.50 would mean that USD is likely to trade in a range instead of heading higher, UOB Group FX analysts Quek Ser Leang and Peter Chia note.

Sharp pullback appears to be overextended

24-HOUR VIEW: “When USD was at 154.55 yesterday, we indicated that ‘the overbought USD rally could extend above 155.00 before pausing.’ However, USD did not rise above 155.00. Instead,