USD/CNH: Under mild downward pressure – UOB Group
US Dollar (USD) is under mild downward pressure; it could edge lower to 7.2540. The major support at 7.2400 is unlikely to be tested. In the longer run, current price movements are likely part of range trading, probably between 7.2400 and 7.2900, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
The major support at 7.2400 is unlikely to be tested
24-HOUR VIEW: “While we noted ‘a slight increase in momentum’ yesterday, we were of the view that ‘this is likely to lead to a higher trading range of 7.2650/7.2900 instead of a sustained rise.’ USD then rose to 7.2927 before dropping sharply 7.2575. This time around, there has been a slight increase in downward momentum. Today, USD is likely to edge lower to 7.2540. The major support at 7.2400 is unlikely to be tested. Resistance is at 7.2760; a breach of 7.2830 would indicate that the current mild downward pressure has eased.”
1-3 WEEKS VIEW: “There is not much to add to our update from last Friday (06 Dec, spot at 7.2660). As previously indicated, ‘the current price movements are likely part of range trading, probably between 7.2400 and 7.2900.’ Note that while USD rose to 7.2927 yesterday, it pulled back quickly to close lower at 7.2685.”
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