The price action suggests US Dollar (USD) could drop below 7.0860; the next level to watch is 7.0770. Only a breach of 7.1150 would indicate the decline in USD has stabilised, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Above 7.1150, the decline in USD might stabilise

24-HOUR VIEW: "Yesterday, we were of the view that USD “could test 7.0860.” However, we held the view that “a continued decline below this level is unlikely.” Our expectation did not materialise, as USD fell to a low of 7.0886 and then rebounded to close largely unchanged at 7.0980 (+0.04%). Downward pressure has eased, and instead of expecting USD to weaken today, we expect it to range-trade between 7.0900 and 7.1080."

1-3 WEEKS VIEW: "We continue to hold the same view as yesterday (29 Oct, spot at 7.0940). As highlighted, the recent price action “suggests USD could drop below 7.0860.” The next level to watch below this level is 7.0770. Overall, only a breach of 7.1150 (no change in ‘strong resistance’ level) would indicate the decline in USD that started in the middle of this month has stabilised."