USD/CNH remains negative – UOB Group
|US Dollar (USD) appears to have entered a consolidation phase between 7.0900 and 7.1070. In the longer run, USD remains negative, and the next level to watch is 7.0885, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Next level to watch is 7.0885
24-HOUR VIEW: "USD plummeted to a low of 7.0918 last Thursday. On Friday, when USD was at 7.0970, we highlighted the following: 'Further declines are not ruled out, but given the deeply oversold conditions, the major support level at 7.0885 is likely out of reach. Resistance levels are at 7.1030 and 7.1085'. USD then dropped to a low of 7.0910, rebounded to 7.1023, and then closing largely unchanged at 7.1000 (+0.03%). USD appears to have entered a consolidation phase. Today, we expect USD to trade between 7.0900 and 7.1070."
1-3 WEEKS VIEW: "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'. We will maintain our view as long as 7.1170 (no change in ‘strong resistance’ level was at 7.1235 yesterday) is not breached."
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