USD/CNH: Likely to trade with a downward bias – UOB Group
|US Dollar (USD) is likely to trade with a downward bias, but is unlikely to break below 7.0540. In the longer run, outlook for USD remains negative; the next level to watch is 7.0400, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
USD/CNH is unlikely to break below 7.0540
24-HOUR VIEW: "USD closed unchanged at 7.0715 two days ago. Yesterday, we indicated that 'the price action provides no fresh clues, and we continue to expect USD to trade between 7.0620 and 7.0740'. USD subsequently rose to 7.0717, dropped to 7.0600, before closing at 7.0621 (- 0.13%). The slight increase in downward momentum suggests USD is likely to trade with a downward bias today, but momentum is likely not strong enough to break below last week’s low, near 7.0540. Resistance levels are at 7.0650 and 7.0710."
1-3 WEEKS VIEW: "We turned negative on USD early last week. In our latest narrative from last Thursday (04 Dec, spot at 7.0565), we indicated that 'the outlook for USD remains negative, and the next level to watch is 7.0400'. Although USD has not been to make further headway on the downside, we will maintain the same view as long as 7.0770 (no change in ‘strong resistance’ level) remains intact."
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