USD/CNH: Expected to trade in a range between 7.1300 and 7.1500 – UOB Group
US Dollar (USD) is expected to trade in a range between 7.1300 and 7.1500. In the longer run, the current price movements are likely part of a range trading phase between 7.1200 and 7.1650, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Current price movements are likely part of a range trading phase
24-HOUR VIEW: "Yesterday, we were of the view that USD 'is likely to consolidate in a range of 7.1200/7.1400.' However, USD rose to a high of 7.1490 before pulling back to close at 7.1393 (+0.06%). Despite the advance, there has been no significant increase in upward momentum. Today, we expect USD to trade in a range between 7.1300 and 7.1500."
1-3 WEEKS VIEW: "We turned negative on USD early last week (as annotated in the chart below). In our most recent narrative from last Friday (29 Aug, spot at 7.1200), we stated that USD “remains negative, and it could drop and potentially break below 7.1000.” Yesterday, USD rose to a high of 7.1490. Although our ‘strong resistance’ level at 7.1500 has not been breached yet, downward momentum has largely faded. The current price movements are likely part of a range trading phase between 7.1200 and 7.1650."
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