USD/CNH: Likely to edge lower while below 7.1750 – UOB Group
The US Dollar (USD) is likely to edge lower; given the mild downward pressure, any decline is unlikely to reach July’s low of 7.0636, UOB Group FX strategists Quek Ser Leang and Peter Chia note.
The near term target is 7.0636
24-HOUR VIEW: “We expected USD to trade in a range between 7.1150 and 7.1450 yesterday. However, USD traded in a range of 7.1259/7.1485, closing at 7.1460 (+0.19%). The slight increase in momentum could lead to USD edging higher today, but any advance is likely limited to a test of 7.1550. Support levels are at 7.1370 and 7.1280.”
1-3 WEEKS VIEW: “Our update from yesterday (22 Aug, spot at 7.1300) remains valid. As highlighted, 'the recent price action has resulted in an increase in downward momentum, albeit not much.' As long as USD remains below 7.1750, it is likely to edge lower in the coming days. Given the mild downward pressure, any decline is unlikely to reach July’s low of 7.0636.”
Author
FXStreet Insights Team
FXStreet
The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.
