USD/CNH: Next support at 7.0910 is unlikely to come into view – UOB Group
US Dollar (USD) could edge lower to 7.0970; the next support at 7.0910 is unlikely to come into view. In the longer run, downward momentum has increased slightly; for a continued decline, USD must first close below 7.1020, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
USD might edge lower to 7.0970
24-HOUR VIEW: "We expected USD to 'trade between 7.1100 and 7.1220' last Friday. We were incorrect, as USD fell to a low of 7.1040. Downward momentum is starting to build. Today, we expect USD to edge lower to 7.0970. The next support at 7.0910 is unlikely to come into view. Resistance levels are at 7.1080 and 7.1140."
1-3 WEEKS VIEW: "We highlighted last Thursday (20 Nov, spot at 7.1155) that “for the time being, we expect USD to trade between 7.1020 and 7.1285.” USD dropped to a low of 7.1040 last Friday. Downward momentum has increased slightly, but for a continued decline, USD must first close below 7.1020. The probability of USD closing below 7.1020 will remain intact as long as it holds below the ‘strong resistance’ level, currently at 7.1185. Looking ahead, a close below 7.1020 will shift the focus to 7.0910."
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.
