USD/CNH: Downward momentum picks up pace – UOB

Pablo Piovano FXStreet

Further losses appear on the table for USD/CNH once the 7.2850 level is cleared, comment Economist Lee Sue Ann and Markets Strategist Quek Ser Leang at UOB Group.

Key Quotes

24-hour view: We expected “further USD weakness towards 7.2950.” We noted, “there is a minor support at 7.3020.” USD weakened less than expected as it rebounded from a low of 7.3016. Downward pressure has eased, and USD is unlikely to weaken further. Today, USD is more likely to trade in a range between 7.3020 and 7.3240.

Next 1-3 weeks: Our update from yesterday (24 Oct, spot at 7.3080) is still valid. As highlighted, downward momentum is building, but USD has to break clearly below 7.2850 before a sustained decline is likely. The chance of USD breaking clearly below 7.2850 will remain intact as long as it stays below 7.3260 in the next few days.

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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