USD/CNH: Likely to trade between 7.0620 and 7.07405 – UOB Group
US Dollar (USD) is likely to trade between 7.0620 and 7.0740. In the longer run, outlook for USD remains negative; the next level to watch is 7.0400, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The next level to watch is 7.0400
24-HOUR VIEW: "Following last Friday’s price action, we indicated yesterday that 'momentum indicators are mostly flat, and we continue to expect USD to trade in a range, most likely between 7.0620 and 7.0740'. USD then traded in a narrower range than expected (7.0659/7.0726), closing unchanged at 7.0715. The price action provides no fresh clues, and we continue to expect USD to trade between 7.0620 and 7.0740 today."
1-3 WEEKS VIEW: "We turned negative on USD early last week. In our latest narrative from last Thursday (04 December, spot at 7.0565), we indicated that 'the outlook for USD remains negative, and the next level to watch is 7.0400'. Although USD has not been to make further headway on the downside, we will maintain the same view as long as 7.0770 (no change in ‘strong resistance’ level) remains intact."
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