USD/CNH: Likely to range-trade between 7.0920 and 7.1280 – UOB Group
US Dollar (USD) is likely to consolidate between 7.1000 and 7.1180. In the longer run, the weakness in USD has stabilized; it is likely to range-trade between 7.0920 and 7.1280, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Weakness in USD has stabilized
24-HOUR VIEW: "Yesterday, we expected USD to 'range-trade between 7.0900 and 7.1080'. We did not expect the strong advance that reached a high of 7.1178. The sharp rise appears excessive, and USD is unlikely to advance much further. Today, USD is more likely to consolidate, probably between 7.1000 and 7.1180."
1-3 WEEKS VIEW: "In our most recent narrative from two days ago (29 Oct, spot at 7.0940), we highlighted that the recent price action 'suggests USD could drop below 7.0860'. We added, 'only a breach of 7.1150 (‘strong resistance’ level) would indicate the decline in USD that started in the middle of this month has stabilized'. Yesterday, in a sudden move, USD soared and broke above our ‘strong resistance’ level. The weakness in USD has stabilized, and from here, we expect USD to range-trade, most likely between 7.0920 and 7.1280."
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