USD/CNH: A break below 7.2600 to mean a decline to 7.2400 – UOB Group
The US Dollar (USD) is likely to trade in a range, probably between 7.2680 and 7.2880. Downward momentum is building again; USD must break and stay below 7.2600 before a decline to 7.2400 can be expected, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.
Rangebound between 7.2680 and 7.2880
24-HOUR VIEW: “Yesterday, we held the view that ‘there is scope for USD to drop below 7.2600, but it might not be able to maintain a foothold below this level.’ USD subsequently dropped to 7.2611 and then rebounded to close largely unchanged (7.2787, 0.09%). Today, we expect USD to trade in a range, probably between 7.2680 and 7.2880.”
1-3 WEEKS VIEW: “Our update from yesterday (18 Jul, spot at 7.2680) is still valid. As highlighted, downward momentum is building, but USD must break and stay below 7.2600 before a decline to 7.2400 can be expected. The chance of USD breaking clearly below 7.2600 will remain intact provided that 7.2900 is not breached.”
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