USD/CNH: Expected to trade in a range between 7.1340 and 7.1480 – UOB Group
|US Dollar (USD) is expected to trade in a range between 7.1340 and 7.1480. In the longer run, upward momentum is starting to build; for a continued advance, USD must first break clearly above 7.1480, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Upward momentum is starting to build
24-HOUR VIEW: "When USD was at 7.1400 in the early Asian hours yesterday, we were of the view that USD 'could continue to rise toward 7.1480.' We were also of the view that 'a sustained rise above this level is unlikely.' Our assessments were not wrong, as after rising to a high of 7.1502, USD retreated and closed largely unchanged at 7.1416 (+0.08%). There has been no further increase in upward momentum, and today, instead of expecting USD to rise, we expect it to trade in a range between 7.1340 and 7.1480."
1-3 WEEKS VIEW: "Last Tuesday (30 Sep, spot at 7.1275), we highlighted that 'the current price movements are likely part of a range-trading phase between 7.1000 and 7.1480.' Yesterday, we indicated that 'upward momentum is starting to build.' However, we pointed out that 'for a continued advance, USD must first break and hold above 7.1480.' We added, 'the odds of a clear break above 7.1480 will increase in the next few days as long as USD holds above 7.1250.' Although USD subsequently rose above 7.1480 (high was 7.1502), it pulled back and closed at 7.1416 (+0.08%). There has been no further increase in upward momentum, but there is still a chance for USD to break and hold above 7.1480 as long as 7.1250 holds."
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.