USD/CNH: Any decline is unlikely to break below 7.1630 – UOB Group
US Dollar (USD) may edge lower against Chinese Yuan (CNH), but any decline is unlikely to break below 7.1630. In the longer run, USD is expected to trade in a range between 7.1550 and 7.1920, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
USD may trade in a range between 7.1550 and 7.1920
24-HOUR VIEW: "We expected USD to 'trade in a range between 7.1730 and 7.1880' last Friday. However, USD traded in a lower range of 7.1660/7.1834, closing little changed at 7.1743 (-0.03%). There has been a slight increase in downward momentum, and this could lead to USD edging lower today. However, any decline is unlikely to break below 7.1630. On the upside, resistance levels are at 7.1780 and 7.1830."
1-3 WEEKS VIEW: "Our most recent narrative was from Wednesday (09 Jul, spot at 7.1825), in which we indicated that 'the increasing upward momentum suggests USD may rise above 7.1900, but it is too early to expect 7.2000 to come into view.' However, aside from a brief rise to 7.1881, USD has not been able to make any further headway on the upside. While our ‘strong support’ level at 7.1630 has not been breached yet, upward momentum has largely faded. From here, we expect USD to trade in a range, most likely between 7.1550 and 7.1920."
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FXStreet Insights Team
FXStreet
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