USD/CNH: Likely to trade sideways between 7.1640 and 7.1840 – UOB Group
|US Dollar (USD) is likely to trade sideways between 7.1640 and 7.1840 against Chinese Yuan (CNH). In the longer run, downward momentum has not increased significantly, but bias for USD is on the downside toward 7.1500, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Downward momentum has not increased significantly
24-HOUR VIEW: "Following the sharp drop in USD last Friday, we indicated yesterday, Monday, that 'the decline appears to be overdone, but there is a chance for USD to test 7.1650 before stabilisation is likely.' We added, 'the major support at 7.1500 is unlikely to come into view.' USD then dropped to 7.1626 and then quickly rebounded to close largely unchanged (7.1783, +0.09%). Downward pressure appears to have eased, and USD is likely to trade sideways today, probably between 7.1640 and 7.1840."
1-3 WEEKS VIEW: "Yesterday (26 May, spot at 7.1770), we indicated that 'while downward momentum has not increased significantly, as long as 7.2070 (‘strong resistance’ level) is not breached, the bias for USD is on the downside toward 7.1500.' Our update still stands."
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.