USD/CNH: Further losses appears not favoured – UOB

Pablo Piovano FXStreet

Extra decline in USD/CNH looks unlikely in the near term, argue UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: Yesterday, we highlighted that USD could rise above 7.2180. We added, “the major resistance at 7.2500 is unlikely to come into view.” USD then rose to a high of 7.2368 and pulled back. The pullback in overbought conditions and slowing momentum suggests USD is not rising further. Today, we expect USD to trade in a range, likely between 7.2000 and 7.2350.

Next 1-3 weeks: There is not much to add to our update from yesterday (19 Jul, spot at 7.1950). As highlighted, after dropping sharply over the past week, USD is unlikely to weaken further. For the time being, USD is likely to trade in a range, probably between 7.1500 and 7.2500.

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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