USD/CNH: Likely to trade in a range between 7.1020 and 7.1170 – UOB Group

US Dollar (USD) is likely to trade in a range between 7.1020 and 7.1170. In the longer run, if USD breaks above 7.1170, it would mean that the weakness in USD has stabilized, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Above 7.1170, the weakness in USD to stabilize

24-HOUR VIEW: "Yesterday, USD traded between 7.1075 and 7.1166, narrower than our expected range of 7.1020/7.1170'. The price action provides no further clues. Today, we continue to expect range-trading between 7.1020 and 7.1170."

1-3 WEEKS VIEW: "After holding a negative USD stance for several days, we highlighted yesterday (18 Nov, spot at 7.1100) that 'downward momentum is starting to slow, and if USD breaks above 7.1170 (‘strong resistance’ level), it would mean that the weakness from the middle of last week has stabilized'. There is no change in our view."