USD/CNH: Likely to trade in a range between 7.1020 and 7.1170 – UOB Group
|US Dollar (USD) is likely to trade in a range between 7.1020 and 7.1170. If USD breaks above 7.1170, it would mean that the weakness in USD has stabilized, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Above 7.1170, USD to stabilize
24-HOUR VIEW: "We stated yesterday that USD 'appears to have entered a consolidation phase between 7.0900 and 7.1070'. However, instead of consolidating, USD rose to a high of 7.1109. The advance lacks momentum, and today, instead of rising further, USD is more likely to trade in a range between 7.1020 and 7.1170."
1-3 WEEKS VIEW: "In our update from last Friday (14 Nov, spot at 7.0970), we reiterated our view, stating that 'we continue to hold a negative USD stance, and now expect a move to 7.0885'. USD subsequently dipped to 7.0910 and rebounded. Yesterday, USD rebounded further to 7.1109. Downward momentum is starting to slow, and if USD breaks above 7.1170 (no change in ‘strong resistance’ level), it would mean that the weakness from the middle of last week has stabilized."
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