USD/CNH: Increasing momentum suggests USD may rise – UOB Group
US Dollar (USD) is expected to trade in a range between 7.1730 and 7.1880 against Chinese Yuan (CNH). In the longer run, increasing momentum suggests USD may rise, but it is too early to expect 7.2000 to come into view, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Above 7.1630, USD may rise towards 7.1900
24-HOUR VIEW: "Our expectation for USD to 'edge lower and test 7.1720' did not materialise, as it traded in a range of 7.1769/7.1843 before closing largely unchanged at 7.1783 (-0.08%). The price action is likely part of a range trading phase. Today, we expect USD to trade between 7.1730 and 7.1880."
1-3 WEEKS VIEW: "Our most recent narrative was from Wednesday (09 Jul, spot at 7.1825), in which 'the increasing upward momentum suggests USD may rise above 7.1900, but it is too early to expect 7.2000 to come into view.' While USD has not been able to make further headway to the upside, as long as USD holds above 7.1630 (no change in ‘strong support’ level), there is still a chance for USD to rise above 7.1900."
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