USD/CNH: Likely moved into a 7.1620/7.2200 range – UOB Group

FXStreet Insights Team FXStreet

Slight increase in upward momentum may lead to US Dollar (USD) testing 7.2000; a clear break above this level seems unlikely. In the longer run, USD has likely moved into a 7.1620/7.2200 range trading phase, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Slight increase in upward momentum

24-HOUR VIEW: "We expected USD to 'trade in a range between 7.1660 and 7.1860' last Friday. USD subsequently traded in a higher range of 7.1718/7.1936. The slight increase in upward momentum may lead to a test of 7.2000. A clear break above this level seems unlikely. On the downside, support levels are at 7.1800 and 7.1740."

1-3 WEEKS VIEW: "Last Thursday (05 Jun, spot at 7.1730), we highlighted that the recent 'mild downward pressure could lead to USD edging lower, but it remains to be seen if it can reach 7.1400.' We added, 'should USD break above 7.1960, it would indicate that the current mild downward pressure has faded.' USD rose to 7.1936 on Friday. While our ‘strong resistance’ level at 7.1960 has not been breached yet, the mild downward momentum has eased. USD has likely moved back into a range trading phase, probably between 7.1620 and 7.2200."

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