USD/CNH: Major resistance at 7.2800 is likely out of reach – UOB Group

Scope for the US Dollar (USD) to rise to 7.2630; the major resistance at 7.2800 is likely out of reach. In the longer run, momentum is beginning to slow; a breach of 7.2000 would mean that USD is not rising further, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

Below 7.2000 the USD is not going to rise further

24-HOUR VIEW: “Yesterday, we indicated that USD could weaken further. We were incorrect. Instead of weakening, USD rose to 7.2556, closing at 7.2501 (+0.24%). Upward momentum has increased, albeit not much. Today, there is scope for USD to rise to 7.2630. The major resistance at 7.2800 is likely out of reach. The mild upward pressure is intact provided that 7.2370 is not breached (minor support is at 7.2440).”

1-3 WEEKS VIEW: “After expecting a higher USD for more than a week, we indicated on Monday (18 Nov, spot at 7.2350) that ‘momentum is beginning to slow, and if USD breaks below 7.2000 (‘strong support’ level) would mean that USD is not rising further.’ USD traded in a relatively quiet manner of the past few days, and our view remains unchanged.”