USD/CNH: USD to trade between 7.2300 and 7.2600 – UOB Group
The US Dollar (USD) is expected USD to trade between 7.2300 and 7.2600. 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 analyst Quek Ser Leang and Lee Sue Ann notes.
Below 7.2000, USD set to not rise further
24-HOUR VIEW: “Last Friday, we held the view that USD ‘could rise to 7.2630.’ We were also of the view that ‘the major resistance at 7.2800 is likely out of reach.’ Our view was not wrong, as USD rose to 7.2670. USD closed at 7.2590 but opened sharply lower today. The outlook is mixed, and today, we expect USD to trade between 7.2300 and 7.2600.”
1-3 WEEKS VIEW: “We have a positive view for more two weeks now. In our latest narrative from last Monday (18 Nov, spot at 7.2350), we indicated that ‘momentum is beginning to slow, and if USD breaks below 7.2000 (‘strong support’ level) would mean that USD is not rising further.’ There is no change in our view.”
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