USD/CNH: Above 7.3250 the 7.3700 level to come into view – UOB Group
US Dollar (USD) is expected to continue to trade in a range, most likely between 7.3350 and 7.3550. In the longer run, upward momentum is beginning to fade; a breach of 7.3250 would suggest that 7.3700 is not coming into view, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
Upward momentum is beginning to fade
24-HOUR VIEW: “USD traded in a quiet manner two days ago. Yesterday, we indicated that ‘momentum indicators are turning flat, suggesting further range trading today, probably in a range of 7.3380/7.3580.’ USD then traded between 7.3351 and 7.3511, closing largely unchanged at 7.3484 (+0.04%). Momentum indicators remain flat, and we continue to expect USD to trade in a range, most likely between 7.3350 and 7.3550.”
1-3 WEEKS VIEW: “We have held the view that ‘there is room for USD to retest the 7.3700’ since early last week. On Tuesday (14 Jan, spot at 7.3410), we noted that ‘upward momentum is beginning to fade, and a breach of 7.3250 (‘strong support’ level) would suggest that 7.3700 is not coming into view.’ While USD has not been able to make any headway on the upside, we will maintain our view for now.”
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