The US Dollar (USD) could continue to decline; the support at 7.1300 is likely out of reach. While downward momentum has been boosted, it is unclear at this time if it is sufficiently enough for USD to break below 7.0635, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

Bears may try to test 7.1300

24-HOUR VIEW: “Our view of sideways trading yesterday was incorrect. Instead of trading sideways, USD plunged, closing sharply lower by 0.41% (7.1490). While severely oversold, USD could continue to decline today. However, the support at 7.1300 is likely out of reach (there is another support level at 7.1410). Resistance is at 7.1580; a breach of 7.1660 would suggest that the weakness has stabilised.”