USD/CNH: Set to weaken to 7.2430 before stabilisation can be expected – UOB Group

FXStreet Insights Team FXStreet

Scope for US Dollar (USD) to weaken to 7.2430 vs Chinese Yuan (CNH) before stabilisation can be expected; it is unclear if 7.2150 will come into view. In the longer run, USD could continue to rise; it is unclear whether it can break above 7.3800, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD can continue to rise

24-HOUR VIEW: "USD soared and closed higher by 0.76% at 7.3471 yesterday. The strong surge appears to be overdone. However, provided that 7.3000 (minor support at 7.3200) is not breached, USD could rise further. That said, given the overbought conditions, any advance is unlikely to reach 7.3800."

1-3 WEEKS VIEW: "USD swung wildly between 7.3485 and 7.2394 late last week. Yesterday (07 Apr), USD closed at 7.3471 (+0.76%), its highest level since Nov 2023. The increase in momentum suggests USD could continue to rise, but after the wild swings, it is unclear whether USD can break above the significant resistance at 7.3800. To keep the momentum going, USD must hold above 7.2750."

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FXStreet Insights Team

FXStreet

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