US Dollar (USD) is likely to trade in a range of 7.1570/7.1770 against Chinese Yuan (CNH). In the longer run, there has been a tentative buildup in momentum; USD is likely to edge lower toward 7.1450, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
There has been a tentative buildup in momentum
24-HOUR VIEW: “When USD was at 7.1685 in the early Asian session yesterday, we highlighted the following: ‘The underlying tone still appears soft, and today, there is a chance for USD to dip below 7.1600. Given the current momentum, any further decline is unlikely to reach the major support at 7.1450.’ USD then dropped to a low of 7.1527 before rebounding quickly. The mild downward pressure appears to have eased. Today, instead of weakening, USD is more likely to trade in a range of 7.1570/7.1770.”
1-3 WEEKS VIEW: “Our latest narrative was from two days ago (25 Jun, spot at 7.1680), in which we highlighted that ‘there has been a tentative buildup in momentum.’ We also highlighted that ‘provided that the ‘strong resistance’ level, currently at 7.1950, is not breached, USD is likely to edge lower toward 7.1450.’ Yesterday, USD dropped briefly to 7.1527. While the brief decline did not result in a further increase in downward momentum, we will maintain our view for now.”
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