USD/CNH: Downward pressure remains intact – UOB Group
|USD is likely to trade in a 7.2400/7.2700 range vs Chinese Yuan (CNH). In the longer run, downward pressure remains intact; should USD break below 7.2260, the next level to watch is 7.2000, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Below 7.2260, the next level to watch is 7.2000
24-HOUR VIEW: "Our view for USD to trade sideways yesterday was incorrect. Instead of trading sideways, USD rose to a high of 7.2697, closing at 7.2637 (+0.23%). Despite the advance, there has been no significant increase in momentum, and instead of continuing to rise, USD is more likely to trade in a 7.2400/7.2700 range."
1-3 WEEKS VIEW: "In our most recent narrative from last Thursday (06 Mar, spot at 7.2440), we indicated that “the downward pressure remains intact, and should USD break below and hold below 7.2260, the next level to watch is 7.2000.” Since then, USD has not been able to make further headway on the downside. That said, we will continue to hold the same view for now, provided that the ‘strong resistance’ at 7.2800 (no change in level) is not breached."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.