USD/CNH faces solid resistance at 7.1560 – UOB
In opinion of FX Strategists at UOB Group, extra gains in USD/CNH are expected to meet a tough barrier in the 7.1560 level.
Key Quotes
24-hour view: “We highlighted last Friday that ‘the rapid but short-lived swings have resulted in a mixed outlook’ and expected USD to ‘trade within a relatively wide range of 7.1050/7.1300’. USD subsequently traded at a higher range than expected (between 7.1083 and 7.1354) before ending the day on a firm note at 7.1337. While the underlying tone has improved, any advance from here is likely limited to a test of the 7.1400 resistance. Support is at 7.1150 followed by 7.1050.”
Next 1-3 weeks: “Despite the relatively strong bounce last Friday (7.1337, +0.32%), upward momentum has not improved by much and it is too early to expect a sustained advance in USD. While USD could edge higher from here, any up move is expected to encounter solid resistance at 7.1560 followed by the year-to-date high near 7.1650 which is acting as a formidable resistance. On the downside, a breach of 7.0800 would indicate the current mild upward pressure has eased.”
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.
