USD/CNH clings to the consolidative phase so far – UOB

Pablo Piovano FXStreet

USD/CNH is still seen navigating the 7.2800-7.3600 range in the next few weeks, comment Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group.

Key Quotes

24-hour view: We highlighted yesterday that “the price action appears to be part of a consolidation, and further sideways trading will not be surprising, likely in a range of 7.3100/7.3300.” USD then traded in a range that was close to our expectations (7.3097/7.3289). Momentum indicators are mostly neutral, and we continue to expect USD to trade sideways, probably between 7.3080 and 7.3310.

Next 1-3 weeks: Our update from two days (03 Sep, spot at 7.3215) still stands. As highlighted, USD is likely to trade in a range for now, probably between 7.2800 and 7.3600.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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