USD/CNH: Any decline is likely to be slow – UOB Group
Room for US Dollar (USD) to drop below 7.1100; any decline is likely to be slow, and 7.1000 may not come into view so soon, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Room for USD to drop below 7.1100
24-HOUR VIEW: "Yesterday, we expected USD to 'trade in a higher range of 7.1160/7.1330.' USD then traded in a tight range between 7.1175 and 7.1261. We continue to expect range-trading, likely between 7.1130 and 7.1260."
1-3 WEEKS VIEW: "Last Friday (12 Sep, spot at 7.1140), we indicated that 'there is room for USD to drop below 7.1100.' However, we pointed out that 'given that there has been no significant increase in downward momentum, the pace of any decline is likely to be slow.' We added, 'the major support at 7.1000 may not come into view so soon.' We will maintain the same view as long as 7.1350 (no change ‘strong resistance’ level) is not breached."
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FXStreet Insights Team
FXStreet
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